Contribution margin: contribution before ad spend

Contribution is revenue from a sale minus variable costs and taxes or fees attributable to that sale: a currency amount before advertising and fixed costs. Contribution margin is that amount as a share of revenue.

Formula

Contribution = average order value − variable costs; contribution margin = contribution ÷ average order value

Contribution profit and contribution margin are different: the first is a currency amount, the second is a percentage of revenue.

Order value — revenue from one sale (₽)
Variable costs — cost of goods, fees and taxes on the sale (₽)

Worked example

Average order value: 5 000 ₽
Variable costs: 3 000 ₽

Contribution = 5,000 ₽ − 3,000 ₽ = 2,000 ₽
margin = 2,000 ₽ ÷ 5,000 ₽ × 100%

Result: 2,000 ₽ contribution, 40% margin.

How to interpret it

Contribution pays for advertising and fixed costs. At a 40% margin, the maximum CAC equals contribution: 2,000 ₽ in this example.
Gross profit is usually calculated before some variable costs; net profit is after all costs. Contribution sits between them.

Common mistakes

Calling revenue contribution.
Leaving out taxes and fees that depend on the sale.
Reporting contribution margin in currency or contribution as a percentage.

Calculate with your own data

Open “Unit economics” with an example

The calculation runs in your browser; the example link restores its values in the calculator. Our calculation methodology documents formula versions, units and rounding.

Editorial team: MARKMA Editorial Team. Reviewed: 2026-09-25.