LexiconEconomics
Net monthly contribution
صافي المساهمة الشهرية
Definition
Net monthly contribution is what a branch contributes each month after deducting the sales it takes from sister branches: revenue multiplied by contribution margin and by one minus the cannibalization rate. It is the number the Doctrine uses for payback, because a new branch earns its place on the sales it adds, not the sales it moves.
In plain words
What a branch truly adds each month, not counting customers who would have gone to your other branch.
Also searched as
- net contribution
- net branch contribution
- contribution after cannibalization
- صافي المساهمة الشهرية
Formula
Net monthly contribution = Revenue × Contribution margin × (1 − Cannibalization rate)
Year-1 contribution = Net monthly contribution × 12
Example
Illustrative example · hypothetical figures
Mature revenue SAR 250,000 a month, contribution margin 18%, cannibalization 10%. Net contribution = 250,000 × 18% × 90% = SAR 40,500 a month.
Where it is used
In the Doctrine and the Playbook
Related terms
Try the Branch Gate on your numbers
How to cite this definition
Alhajj, S. (2026). “Net monthly contribution”. In The Revenue Engineering Lexicon, version 1.0. Riyadh. https://seiflden.com/lexicon/net-contribution/