LexiconEconomics

Net monthly contribution

صافي المساهمة الشهرية

Canon · Doctrine 2.0Added in version 1.0

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/

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