> ## 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 RAAD: First-Order Revenue After Ad Spend

> Track New Customer RAAD for your Shopify store. Measure first-order revenue remaining after advertising.

<Tip>
  New Customer RAAD measures new customer order revenue minus advertising spend—what remains from first-order revenue after paying for ads.
</Tip>

## Formula

<Info>
  **NC RAAD** = **NC Total Order Revenue** − **Ad Spend**
</Info>

### Formula Components

| Metric                                                                                       | Definition                               |
| -------------------------------------------------------------------------------------------- | ---------------------------------------- |
| [**NC Total Revenue**](/reference/metrics/orders/revenue/new-customer-total-revenue)         | Total revenue from new customer orders   |
| **Ad Spend**                                                                                 | Total advertising spend across platforms |
| [**customer\_type = new\_customer**](/data-dictionary/measures-and-dimensions#customer-type) | Filters to first-time buyers             |

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

***

## Example

New customers generated **\$80,000** revenue and you spent **\$25,000** on ads.

| Component   | Amount       | Calculation              |
| ----------- | ------------ | ------------------------ |
| NC Revenue  | \$80,000     | First-time buyer revenue |
| Ad Spend    | \$25,000     | Advertising cost         |
| **NC RAAD** | **\$55,000** | \$80,000 − \$25,000      |

***

## How It Works

NC RAAD shows how much new customer revenue remains after advertising costs. Positive NC RAAD means your acquisition spend is justified by first-order revenue. Compare to RC RAAD to see retention value.

***

## When to Use

| Scenario                  | Action                                       |
| ------------------------- | -------------------------------------------- |
| Measuring acquisition ROI | Positive NC RAAD validates acquisition spend |
| Comparing segments        | NC RAAD vs RC RAAD shows retention impact    |
| Budget planning           | Set acquisition budgets against NC RAAD      |
| Channel optimization      | Compare NC RAAD across channels              |

***

## Related Metrics

| Metric                                                                         | Relationship                   |
| ------------------------------------------------------------------------------ | ------------------------------ |
| [RC RAAD](/reference/metrics/orders/performance/returning-customer-total-raad) | RAAD from returning customers  |
| [RAAD (Total)](/reference/metrics/orders/performance/total-raad)               | Overall revenue after ad spend |
| [CAC](/reference/metrics/orders/performance/cac)                               | Cost per new customer          |

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