> ## 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 Product Margin: Profitability from First-Time Buyers

> Track product margin from new customer orders. Measure gross revenue minus COGS for first-time buyers to evaluate acquisition profitability.

<Tip>
  The total product-level profit from new customer orders, calculated as gross revenue minus cost of goods sold (COGS).
</Tip>

## Formula

<Info>
  **New Customer Product Margin** = [**New Customer Gross Revenue**](/reference/metrics/orders/revenue/new-customer-gross-revenue) − [**New Customer COGS**](/reference/metrics/orders/cogs/new-customer-cogs)
</Info>

### Formula Components

| Metric                                                                                         | Definition                                                   |
| ---------------------------------------------------------------------------------------------- | ------------------------------------------------------------ |
| [**New Customer Gross Revenue**](/reference/metrics/orders/revenue/new-customer-gross-revenue) | Total revenue from first-time buyer orders before deductions |
| [**New Customer COGS**](/reference/metrics/orders/cogs/new-customer-cogs)                      | Cost of goods sold for products purchased by new customers   |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Currency                    |
| **Data Source** | [Shopify](/sources/shopify) |
| **Aggregation** | Sum                         |

***

## Example

Your store acquired **847 new customers** in March with **\$42,350** in product margin:

| Segment             | Revenue   | COGS      | Product Margin |
| ------------------- | --------- | --------- | -------------- |
| New Customers       | \$127,050 | \$84,700  | **\$42,350**   |
| Returning Customers | \$198,200 | \$118,920 | \$79,280       |

New customer product margin is **\$42,350**, representing a 33% gross margin on acquisition revenue.

***

## How It Works

New Customer Product Margin isolates profitability from first-time buyers by subtracting [New Customer COGS](/reference/metrics/orders/cogs/new-customer-cogs) from [New Customer Gross Revenue](/reference/metrics/orders/revenue/new-customer-gross-revenue). This excludes returning customer orders, showing only the product-level profit generated by customer acquisition.

***

## When to Use

| Scenario                          | Action                                                       |
| --------------------------------- | ------------------------------------------------------------ |
| Evaluating acquisition ROI        | Compare product margin against customer acquisition cost     |
| Setting CPA targets               | Use as the ceiling for profitable acquisition spend          |
| Analyzing new vs returning mix    | Compare profitability between customer segments              |
| Product selection for acquisition | Identify which products drive profitable new customer orders |

***

## Related Metrics

| Metric                                                                                                          | Relationship                              |
| --------------------------------------------------------------------------------------------------------------- | ----------------------------------------- |
| [Product Margin](/reference/metrics/orders/product-margin/product-margin)                                       | Total product margin across all customers |
| [Returning Customer Product Margin](/reference/metrics/orders/product-margin/returning-customer-product-margin) | Same calculation for repeat buyers        |
| [New Customer Gross Revenue](/reference/metrics/orders/revenue/new-customer-gross-revenue)                      | Revenue component before subtracting COGS |
| [New Customer COGS](/reference/metrics/orders/cogs/new-customer-cogs)                                           | Cost component subtracted from revenue    |

[See all Product Margin metrics →](/reference/metrics/orders/product-margin)