> ## 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 Contribution Margin %: Acquisition Efficiency

> Track what percentage of new customer revenue remains as contribution margin. Measure acquisition profitability and optimize customer acquisition costs.

<Tip>
  Percentage of new customer net revenue remaining as contribution margin, filtered by customer\_type = new\_customer.
</Tip>

## Formula

<Info>
  **New Customer Contribution Margin %** = ( [**New Customer Contribution Margin**](/reference/metrics/orders/contribution-margin/new-customer-contribution-margin) ÷ [**New Customer Net Revenue**](/reference/metrics/orders/revenue/new-customer-net-revenue) ) × 100
</Info>

### Formula Components

| Metric                                                                                                                 | Definition                                                                                |
| ---------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- |
| [**New Customer Contribution Margin**](/reference/metrics/orders/contribution-margin/new-customer-contribution-margin) | Total profit from new customers after COGS, fulfillment, transaction, and marketing costs |
| [**New Customer Net Revenue**](/reference/metrics/orders/revenue/new-customer-net-revenue)                             | Net revenue from new customers after discounts and refunds                                |
| [**customer\_type = new\_customer**](/data-dictionary/measures-and-dimensions#visitor-dimensions)                      | Filters to orders from first-time buyers only                                             |

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

***

## Example

Your store generated **\$45,200** in new customer contribution margin from **\$125,000** in net revenue, yielding a **36.2%** margin rate:

| Customer Type       | Net Revenue | Contribution Margin | Margin % |
| ------------------- | ----------- | ------------------- | -------- |
| New Customers       | \$125,000   | \$45,200            | 36.2%    |
| Returning Customers | \$200,000   | \$142,000           | 71.0%    |
| All Customers       | \$325,000   | \$187,200           | 57.6%    |

***

## How It Works

This metric divides new customer contribution margin by new customer net revenue to show what portion of acquisition revenue converts to profit. Lower percentages indicate higher relative costs (COGS, fulfillment, marketing) against first-order revenue—common for brands investing heavily in customer acquisition.

***

## When to Use

| Scenario                          | Action                                                             |
| --------------------------------- | ------------------------------------------------------------------ |
| Evaluating acquisition efficiency | Compare margin % between new and returning customers               |
| Setting CAC targets               | Ensure acquisition costs don't exceed acceptable margin thresholds |
| Channel optimization              | Identify which channels acquire customers with better margins      |
| Pricing analysis                  | Determine if new customer promotions erode profitability           |

***

## Related Metrics

| Metric                                                                                                                                   | Relationship                                      |
| ---------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------- |
| [New Customer Contribution Margin](/reference/metrics/orders/contribution-margin/new-customer-contribution-margin)                       | The numerator (dollar amount before percentage)   |
| [New Customer Net Revenue](/reference/metrics/orders/revenue/new-customer-net-revenue)                                                   | The denominator (revenue base for the percentage) |
| [Returning Customer Contribution Margin %](/reference/metrics/orders/contribution-margin/returning-customer-contribution-margin-percent) | Same calculation for repeat buyers                |
| [Contribution Margin %](/reference/metrics/orders/contribution-margin/contribution-margin-percent)                                       | Blended margin across all customer types          |

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