> ## 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 CM2 %: First-Order Variable Margin Rate

> Track New Customer CM2 percentage for your Shopify store. Measure variable margin rate from first-time buyers.

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

## Formula

<Info>
  **NC CM2 %** = ( **NC CM2** ÷ **NC Net Revenue** ) × 100
</Info>

### Formula Components

| Metric                                                                           | Definition                     |
| -------------------------------------------------------------------------------- | ------------------------------ |
| [**NC CM2**](/reference/metrics/orders/contribution-margin/new-customer-cm2)     | New customer variable margin   |
| [**NC Net Revenue**](/reference/metrics/orders/revenue/new-customer-net-revenue) | Net revenue from new customers |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Percentage                                                           |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/sources/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          |

***

## Related Metrics

| Metric                                                                                   | Relationship                                 |
| ---------------------------------------------------------------------------------------- | -------------------------------------------- |
| [NC CM2](/reference/metrics/orders/contribution-margin/new-customer-cm2)                 | Dollar amount that NC CM2 % is based on      |
| [RC CM2 %](/reference/metrics/orders/contribution-margin/returning-customer-cm2-percent) | Variable margin rate for returning customers |
| [CAC](/reference/metrics/orders/performance/cac)                                         | Cost to acquire new customers                |

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