Launch your Shopify store in as little as 2 weeks, with fixed prices from £695. See packages

What is Contribution Margin?

Contribution margin is what's left from each sale after all variable costs, such as product cost, shipping, packaging, payment fees and ad costs.

By Abdullah Ashraf · Last updated: October 2026

Example for a UK store

A £30 order with £21 of variable costs has a £9 contribution margin.

Why it matters

It shows whether each order actually makes money.

Related terms

Let's grow your store

Tell me what you sell and where you're stuck. You'll get honest advice and a fixed quote, even if we don't end up working together.

Chat on WhatsApp