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Contributionmargin
Revenue from a sale minus the variable costs of making that sale.
Growth Score · Unit Economics
Definition
What it means
Contribution margin shows what each sale adds toward fixed costs and profit. It helps decide whether a price, channel or discount is worth it.
Include payment fees, shipping and support that scale with orders.
In Growth Score
Part of your score
Unit Economics
More in Unit Economics
FAQ
Quick answers
What is Contribution margin?
Revenue from a sale minus the variable costs of making that sale.
Where does it sit in Growth Score?
It belongs to the Unit Economics pillar, one of the 12 pillars your score is built from.
What should I read next?
Start with Gross margin and Unit economics, then browse the other terms in Unit Economics.
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