> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# New Customer CM1: First-Order Gross Margin

> Track New Customer CM1 for your Shopify store. Measure gross margin from first-time buyers.

<Tip>
  New Customer CM1 measures the gross margin from first-time buyers—net revenue minus COGS for new customer orders only.
</Tip>

## Formula

<Info>
  **NC CM1** = **NC Net Revenue** − **NC Total COGS**
</Info>

### Formula Components

| Metric                                                                                       | Definition                                 |
| -------------------------------------------------------------------------------------------- | ------------------------------------------ |
| [**NC Net Revenue**](/reference/metrics/orders/revenue/new-customer-net-revenue)             | Net revenue from new customer orders       |
| **NC Total COGS**                                                                            | Cost of goods sold for new customer orders |
| [**customer\_type = new\_customer**](/data-dictionary/measures-and-dimensions#customer-type) | Filters to first-time buyers               |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Currency                                                             |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/sources/upstack-costs) |
| **Aggregation** | Sum                                                                  |

***

## Example

Your Shopify store acquired new customers with **\$50,000** net revenue and **\$18,000** in COGS.

| Component      | Amount       | Calculation              |
| -------------- | ------------ | ------------------------ |
| NC Net Revenue | \$50,000     | First-time buyer revenue |
| NC COGS        | \$18,000     | Product costs            |
| **NC CM1**     | **\$32,000** | \$50,000 − \$18,000      |

***

## How It Works

NC CM1 isolates the gross margin generated specifically from new customer orders. This helps evaluate whether your customer acquisition is profitable at the product level—before considering fulfillment and marketing costs.

***

## When to Use

| Scenario                             | Action                                         |
| ------------------------------------ | ---------------------------------------------- |
| Evaluating acquisition profitability | Ensure NC CM1 covers acquisition costs         |
| Comparing customer segments          | Measure NC vs RC gross margin                  |
| Setting CAC targets                  | Use NC CM1 as the ceiling for acquisition cost |
| Product mix analysis                 | See which products new customers buy           |

***

## Related Metrics

| Metric                                                                             | Relationship                             |
| ---------------------------------------------------------------------------------- | ---------------------------------------- |
| [NC CM1 %](/reference/metrics/orders/contribution-margin/new-customer-cm1-percent) | NC CM1 as a percentage of NC net revenue |
| [RC CM1](/reference/metrics/orders/contribution-margin/returning-customer-cm1)     | Gross margin from returning customers    |
| [CAC](/reference/metrics/orders/performance/cac)                                   | Cost to acquire new customers            |

[See all Contribution Margin metrics →](/reference/metrics/orders/contribution-margin)