> ## 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 ROAS: First-Order Return on Ad Spend

> Track new customer ROAS for your Shopify store. Measure revenue generated from first orders per dollar of ad spend.

<Tip>
  New Customer ROAS measures how much revenue you generate from first-time customer orders per dollar of ad spend.
</Tip>

## Formula

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

### Formula Components

| Metric                                                                                         | Definition                           |
| ---------------------------------------------------------------------------------------------- | ------------------------------------ |
| [**New Customer Total Revenue**](/reference/metrics/orders/revenue/new-customer-total-revenue) | Revenue from first-time buyer orders |
| [**Ad Spend**](/reference/metrics/ads/total-spend)                                             | Total advertising spend              |

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

***

## Example

Your Shopify store generates **\$50,000** from new customer orders and spends **\$15,000** on ads.

| Component             | Value    | Calculation         |
| --------------------- | -------- | ------------------- |
| New Customer Revenue  | \$50,000 | First-order sales   |
| Ad Spend              | \$15,000 | Marketing cost      |
| **New Customer ROAS** | **3.33** | \$50,000 ÷ \$15,000 |

***

## How It Works

New Customer ROAS shows acquisition efficiency at the revenue level. A ROAS of 3.33 means you're generating \$3.33 of first-order revenue for every \$1 spent on ads. However, revenue doesn't equal profit—use CM ROAS for margin-adjusted efficiency.

***

## Benchmarks

| Rating      | Range     |
| ----------- | --------- |
| Excellent   | > 4.0     |
| Good        | 2.5 – 4.0 |
| Moderate    | 1.5 – 2.5 |
| Challenging | \< 1.5    |

Note: Required ROAS varies by margin structure. High-margin products need lower ROAS to be profitable.

***

## Related Metrics

| Metric                                                                                     | Relationship               |
| ------------------------------------------------------------------------------------------ | -------------------------- |
| [New Customer Total Revenue](/reference/metrics/orders/revenue/new-customer-total-revenue) | Numerator (revenue)        |
| [ROAS](/reference/metrics/orders/performance/total-roas)                                   | Overall return on ad spend |
| [Returning Customer ROAS](/reference/metrics/orders/performance/returning-customer-roas)   | Repeat order ROAS          |
| [New Customer CM2 ROAS](/reference/metrics/orders/performance/new-customer-cm2-roas)       | Margin-adjusted ROAS       |

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