> ## 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 CM1 ROAS: Acquisition Gross Margin Efficiency

> Track new customer gross margin return on ad spend. Measure how much CM1 profit from first-time buyers you generate per ad dollar.

<Tip>
  New Customer CM1 ROAS measures how much gross margin from first-time buyer orders you earn for every dollar spent on advertising.
</Tip>

## Formula

<Info>
  **NC CM1 ROAS** = **New Customer CM1** ÷ **Ad Spend**
</Info>

### Formula Components

| Metric                                                                                                 | Definition                                       |
| ------------------------------------------------------------------------------------------------------ | ------------------------------------------------ |
| [**New Customer CM1**](/reference/metrics/orders/contribution-margin/new-customer-contribution-margin) | Gross margin from new customer orders after COGS |
| **Ad Spend**                                                                                           | Total advertising spend across all platforms     |

| Metadata        |                                                                                                                           |
| --------------- | ------------------------------------------------------------------------------------------------------------------------- |
| **Type**        | Multiplier                                                                                                                |
| **Data Source** | [Shopify](/sources/catalog/shopify), [Meta Ads](/sources/catalog/facebook-ads), [Google Ads](/sources/catalog/google-ads) |
| **Aggregation** | Ratio                                                                                                                     |

***

## Example

Your Shopify store generated **\$45,000** in new customer CM1 while spending **\$50,000** on advertising.

| Metric           | Value    | Calculation              |
| ---------------- | -------- | ------------------------ |
| New Customer CM1 | \$45,000 | NC Net Revenue − NC COGS |
| Total Ad Spend   | \$50,000 | All ad platforms         |
| NC CM1 ROAS      | 0.9x     | \$45,000 ÷ \$50,000      |

A NC CM1 ROAS of 0.9x means you earn \$0.90 in gross margin from new customers for every \$1 spent on advertising.

***

## How It Works

NC CM1 ROAS isolates the gross margin contribution from new customer acquisitions relative to advertising spend. This helps you understand if your acquisition efforts are profitable at the gross margin level before accounting for fulfillment and marketing costs.

***

## When to Use

| Scenario                               | Action                                                     |
| -------------------------------------- | ---------------------------------------------------------- |
| Evaluating acquisition campaigns       | Compare NC CM1 ROAS across acquisition channels            |
| Setting CAC payback targets            | Understand first-order gross margin per ad dollar          |
| Product-mix analysis for new customers | See if high-COGS products affect acquisition profitability |
| Prospecting vs retargeting comparison  | Compare NC vs RC CM1 ROAS                                  |

***

## Related Metrics

| Metric                                                                       | Relationship                                   |
| ---------------------------------------------------------------------------- | ---------------------------------------------- |
| [CM1 ROAS](/reference/metrics/orders/performance/cm1-roas)                   | Total CM1 ROAS including all customers         |
| [NC CM2 ROAS](/reference/metrics/orders/performance/new-customer-cm2-roas)   | Includes fulfillment costs for new customers   |
| [NC CM3 ROAS](/reference/metrics/orders/performance/new-customer-cm3-roas)   | Includes all marketing costs for new customers |
| [New Customer ROAS](/reference/metrics/orders/performance/new-customer-roas) | Revenue-based return for new customers         |

[See all Performance metrics →](/reference/metrics/orders/performance)