Margin and profit · P&L line 29

CM3

CM2 minus advertising. The number an operator lives on.

Formula

CM2 − marketing costs

CM3 subtracts marketing spend from CM2. It is the last margin that still moves with what you did today, which makes it the number to steer daily budgets on.

Everything below CM3 is fixed for the month: rent, salaries, software, agencies. CM3 is what has to cover them.

Watch it against your fixed costs rather than in isolation. A CM3 of ten thousand euro is excellent for a store with six thousand of overhead and a problem for one with twenty. CM1, CM2 and CM3 explained sets out how the three are read together.

Related terms

CM2 EBITDA Break-even point MER

Margin and profit

CM2CM1 minus the cost of fulfilling the order and getting paid.Previous EBITDAProfit before interest, tax, depreciation and amortisation.Next

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BlogHow margin actually behaves in an ecommerce business.Help centreConnecting, costing, syncing, billing. The short answers.TemplatesSix free spreadsheets with the columns nouz actually uses.CalculatorsBreak-even, margins, fees, MER and packaging EPR, on §8 maths.