> ## 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 LTV CM2: First-Order Variable Margin Value

> Track new customer LTV CM2 for your Shopify store. Measure the average first-order variable margin from newly acquired customers.

<Tip>
  New Customer LTV CM2 measures the average variable margin from first-time customer orders—what's available to cover marketing costs after COGS and fulfillment.
</Tip>

## Formula

<Info>
  **New Customer LTV CM2** = **New Customer CM2** ÷ **New Customers**
</Info>

### Formula Components

| Metric                                                                                 | Definition                                   |
| -------------------------------------------------------------------------------------- | -------------------------------------------- |
| [**New Customer CM2**](/reference/metrics/orders/contribution-margin/new-customer-cm2) | Variable margin from first-time buyer orders |
| [**New Customers**](/reference/metrics/orders/customers/new-customers)                 | Count of first-time buyers                   |

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

***

## Example

Your Shopify store generates **\$22,000** CM2 from **500** new customers.

| Component                | Value    | Calculation                 |
| ------------------------ | -------- | --------------------------- |
| New Customer CM2         | \$22,000 | First-order variable margin |
| New Customers            | 500      | First-time buyers           |
| **New Customer LTV CM2** | **\$44** | \$22,000 ÷ 500              |

***

## How It Works

New Customer LTV CM2 is the most practical first-order value for setting CPA targets. It shows what's left after COGS and fulfillment to cover acquisition costs.

***

## When to Use

| Scenario           | Action                                     |
| ------------------ | ------------------------------------------ |
| Break-even CPA     | New Customer LTV CM2 = max first-order CPA |
| Marketing budget   | Budget based on first-order margins        |
| Channel efficiency | Compare first-order CM2 by source          |
| Unit economics     | Key input for acquisition models           |

***

## Related Metrics

| Metric                                                                             | Relationship                  |
| ---------------------------------------------------------------------------------- | ----------------------------- |
| [LTV CM2](/reference/metrics/orders/ltv/ltv-cm2)                                   | Full lifetime variable margin |
| [New Customer LTV CM1](/reference/metrics/orders/ltv/new-customer-ltv-cm1)         | Before fulfillment            |
| [New Customer CM2](/reference/metrics/orders/contribution-margin/new-customer-cm2) | Total first-order CM2         |
| [New Customer CPA](/reference/metrics/orders/performance/cac)                      | Acquisition cost              |

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