> ## 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 Gross Profit: Acquisition Product Profitability

> Track gross profit from new customers. Understand revenue minus COGS for first-time buyer orders.

<Tip>
  New Customer Gross Profit measures revenue minus COGS from first-time buyer orders. It shows product-level profitability for acquisition.
</Tip>

## Formula

<Info>
  **NC Gross Profit** = **NC Net Revenue** − **NC COGS**
</Info>

### Formula Components

| Metric                                                                           | Definition                                 |
| -------------------------------------------------------------------------------- | ------------------------------------------ |
| [**NC Net Revenue**](/reference/metrics/orders/revenue/new-customer-net-revenue) | Net revenue from new customer orders       |
| [**NC COGS**](/reference/metrics/orders/cogs/new-customer-cogs)                  | Cost of goods sold for new customer orders |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Currency                    |
| **Data Source** | [Shopify](/sources/shopify) |
| **Aggregation** | Sum                         |

***

## Example

Your Shopify store generated **\$40,000** in new customer net revenue with **\$18,000** in COGS.

| Metric          | Value    | Calculation             |
| --------------- | -------- | ----------------------- |
| NC Net Revenue  | \$40,000 | After discounts/refunds |
| NC COGS         | \$18,000 | Product costs           |
| NC Gross Profit | \$22,000 | \$40,000 − \$18,000     |

A new customer gross profit of \$22,000 represents the product-level profit from acquisition before operating costs.

***

## How It Works

NC Gross Profit isolates the gross margin contribution from new customer orders. This helps you understand if acquired customers are buying profitable products, which is essential for LTV:CAC calculations.

***

## When to Use

| Scenario                  | Action                                         |
| ------------------------- | ---------------------------------------------- |
| Acquisition profitability | Understand first-order gross margin            |
| Product mix analysis      | See if new customers buy high-margin products  |
| CAC payback planning      | Compare NC gross profit to CAC                 |
| NC vs RC comparison       | Compare acquisition vs retention gross margins |

***

## Related Metrics

| Metric                                                                                                   | Relationship                          |
| -------------------------------------------------------------------------------------------------------- | ------------------------------------- |
| [Gross Profit](/reference/metrics/orders/contribution-margin/gross-profit)                               | Total gross profit for all orders     |
| [RC Gross Profit](/reference/metrics/orders/contribution-margin/returning-customer-gross-profit)         | Gross profit from returning customers |
| [NC Contribution Margin](/reference/metrics/orders/contribution-margin/new-customer-contribution-margin) | NC gross profit minus variable costs  |
| [NC COGS](/reference/metrics/orders/cogs/new-customer-cogs)                                              | The cost component subtracted         |

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