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Daniel Khanin*

Ulan-Bator Angarsk Almaty Tomsk Moscow Urmala Barcelona

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Contribution Margin

·
  • unit economics,
  • metrics,
  • cards
·
1 min 17

This metric shows the amount of contribution margin received from all scaling units during the life of the cohort. 

It is the contribution margin that is used to cover fixed costs and provides a given level of profit in the business.

CM = UA×(LTV-LTC) = UA×(CLTV×C1-LTC) = B×(CLTV-CLTC) 

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