> ## 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 CM4 ROAS: First-Order Operating Profit ROAS

> Track new customer CM4 ROAS for your Shopify store. Measure operating profit generated per dollar of ad spend on first orders.

<Tip>
  New Customer CM4 ROAS measures how much operating profit (after all costs including OPEX) you generate from first orders per dollar of ad spend.
</Tip>

## Formula

<Info>
  **New Customer CM4 ROAS** = **New Customer CM4** ÷ **Ad Spend**
</Info>

### Formula Components

| Metric                                                                                 | Definition                                    |
| -------------------------------------------------------------------------------------- | --------------------------------------------- |
| [**New Customer CM4**](/reference/metrics/orders/contribution-margin/new-customer-cm4) | Operating profit from first-time buyer orders |
| [**Ad Spend**](/reference/metrics/advertising/blended/blended-spend)                   | Total advertising spend                       |

| Metadata        |                                                                                             |
| --------------- | ------------------------------------------------------------------------------------------- |
| **Type**        | Ratio                                                                                       |
| **Data Source** | [Shopify](/sources/catalog/shopify), [Advertising Platforms](/sources/catalog/facebook-ads) |
| **Aggregation** | Ratio                                                                                       |

***

## Example

Your Shopify store generates **\$2,000** CM4 from new customers and spends **\$15,000** on ads.

| Component                 | Value    | Calculation                  |
| ------------------------- | -------- | ---------------------------- |
| New Customer CM4          | \$2,000  | First-order operating profit |
| Ad Spend                  | \$15,000 | Marketing cost               |
| **New Customer CM4 ROAS** | **0.13** | \$2,000 ÷ \$15,000           |

***

## How It Works

New Customer CM4 ROAS is typically low or negative because first orders must cover acquisition costs plus fixed overhead. This is the most stringent profitability test for customer acquisition.

***

## Interpretation

| Scenario      | Meaning                                             |
| ------------- | --------------------------------------------------- |
| CM4 ROAS > 0  | First orders profitable after all costs             |
| CM4 ROAS = 0  | First orders break even fully loaded                |
| CM4 ROAS \< 0 | First orders lose money; profitability requires LTV |

Most brands have negative first-order CM4 ROAS—lifetime value makes acquisition profitable.

***

## Related Metrics

| Metric                                                                                           | Relationship                 |
| ------------------------------------------------------------------------------------------------ | ---------------------------- |
| [New Customer CM4](/reference/metrics/orders/contribution-margin/new-customer-cm4)               | Numerator (operating profit) |
| [CM4 ROAS](/reference/metrics/orders/performance/cm4-roas)                                       | Overall CM4 ROAS             |
| [Returning Customer CM4 ROAS](/reference/metrics/orders/performance/returning-customer-cm4-roas) | Repeat order CM4 ROAS        |

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