New Customer CM2 %: First-Order Variable Margin Rate

NC CM2 % measures the percentage of new customer net revenue remaining after all variable costs—COGS, fulfillment, and transaction fees.

Formula

NC CM2 % = ( NC CM2 ÷ NC Net Revenue ) × 100

Formula Components

Metric	Definition
NC CM2	New customer variable margin
NC Net Revenue	Net revenue from new customers

Metadata
Type	Percentage
Data Source	Shopify, Upstack Costs
Aggregation	Ratio

Example

New customers generated $26,000 CM2 from $50,000 net revenue.

Component	Value	Calculation
NC CM2	$26,000	After variable costs
NC Net Revenue	$50,000	Revenue base
NC CM2 %	52%	$26,000 ÷ $50,000 × 100

How It Works

NC CM2 % shows what percentage of new customer revenue remains after variable costs. This rate determines your maximum allowable CAC as a percentage of AOV. A 52% NC CM2 % means you can spend up to 52% of new customer AOV on acquisition while staying profitable.

When to Use

Scenario	Action
Calculating max CAC	NC CM2 % × NC AOV = max profitable CAC
Comparing segments	Benchmark NC CM2 % vs RC CM2 %
Tracking efficiency	Monitor if new customer variable costs are increasing
Channel evaluation	Compare NC CM2 % across acquisition channels

Metric	Relationship
NC CM2	Dollar amount that NC CM2 % is based on
RC CM2 %	Variable margin rate for returning customers
CAC	Cost to acquire new customers

See all Contribution Margin metrics →

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​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics