Skip to content
The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMarketing FinanceContribution Profit

Marketing Finance

Contribution Profit

The dollars left after subtracting product, fulfillment, transaction, and marketing costs from revenue, available to cover fixed costs.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Contribution profit is the money left after subtracting variable costs, including product, fulfillment, transaction fees, and marketing, from revenue. It represents what each order or customer contributes toward fixed costs and overall profit. Ecommerce and direct-to-consumer brands use it to judge whether growth is profitable rather than relying on revenue or ROAS alone.