> ## 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.

# Cohort CM1: Gross Margin per Customer by Cohort

> Track cumulative gross margin (CM1) per customer for each acquisition cohort. Measure Shopify profitability before fulfillment costs.

<Tip>
  Cumulative gross margin (net revenue minus COGS) per customer over time, showing profit before fulfillment and marketing costs.
</Tip>

## Formula

<Info>
  **Cohort CM1** = **Cumulative CM1** ÷ [**Cohort Customers**](/reference/metrics/orders/ltv/cohort-customers)
</Info>

### Formula Components

| Metric                                                                 | Definition                                                 |
| ---------------------------------------------------------------------- | ---------------------------------------------------------- |
| **Cumulative CM1**                                                     | Total gross margin (Net Revenue − COGS) from cohort orders |
| [**Cohort Customers**](/reference/metrics/orders/ltv/cohort-customers) | Number of customers in the acquisition cohort              |

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

***

## Example

Cumulative CM1 per customer for a January 2024 cohort:

| Period   | Cumulative CM1/Customer | Margin % |
| -------- | ----------------------- | -------- |
| Month 1  | \$28                    | 35%      |
| Month 3  | \$48                    | 36%      |
| Month 6  | \$72                    | 37%      |
| Month 12 | \$105                   | 38%      |

***

## How It Works

Cohort CM1 tracks the gross profit generated per customer after subtracting cost of goods sold. This reveals how much profit each cohort generates before fulfillment and marketing expenses. Higher CM1 cohorts can support greater acquisition spend. COGS is automatically pulled from your Shopify product data.

***

## When to Use

| Scenario                  | Action                                                |
| ------------------------- | ----------------------------------------------------- |
| Setting CAC targets       | CM1 provides the ceiling for acquisition spend        |
| Evaluating product mix    | Cohorts buying higher-margin products show better CM1 |
| Forecasting profitability | Project profit contribution by cohort maturity        |
| Comparing to CM2          | Understand fulfillment impact on margins              |

***

## Related Metrics

| Metric                                                                                   | Relationship                               |
| ---------------------------------------------------------------------------------------- | ------------------------------------------ |
| [Cohort CM2](/reference/metrics/orders/ltv/cohort-cm2)                                   | CM2 subtracts fulfillment costs from CM1   |
| [Contribution Margin](/reference/metrics/orders/contribution-margin/contribution-margin) | Non-cohort contribution margin             |
| [COGS](/reference/metrics/orders/cogs/cogs)                                              | The cost component subtracted from revenue |
| [Cohort Net Revenue](/reference/metrics/orders/ltv/cohort-net-revenue)                   | Revenue before COGS deduction              |

[See all LTV metrics →](/reference/metrics/orders/ltv)