New Customer CM2 %: First-Order Variable Margin Rate

Track New Customer CM2 percentage for your Shopify store. Measure variable margin rate from first-time buyers.

NC CM2 % measures the percentage of new customer net revenue remaining after all variable costs—COGS, fulfillment, and transaction fees.

Formula

NC CM2 % = ( NC CM2 ÷ NC Net Revenue ) × 100

Formula Components

Metric	Definition
NC CM2	New customer variable margin
NC Net Revenue	Net revenue from new customers

Metadata
Type	Percentage
Data Source	Shopify, Upstack Costs
Aggregation	Ratio

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Example

New customers generated $26,000 CM2 from $50,000 net revenue.

Component	Value	Calculation
NC CM2	$26,000	After variable costs
NC Net Revenue	$50,000	Revenue base
NC CM2 %	52%	$26,000 ÷ $50,000 × 100

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How It Works

NC CM2 % shows what percentage of new customer revenue remains after variable costs. This rate determines your maximum allowable CAC as a percentage of AOV. A 52% NC CM2 % means you can spend up to 52% of new customer AOV on acquisition while staying profitable.

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When to Use

Scenario	Action
Calculating max CAC	NC CM2 % × NC AOV = max profitable CAC
Comparing segments	Benchmark NC CM2 % vs RC CM2 %
Tracking efficiency	Monitor if new customer variable costs are increasing
Channel evaluation	Compare NC CM2 % across acquisition channels

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Related Metrics

Metric	Relationship
NC CM2	Dollar amount that NC CM2 % is based on
RC CM2 %	Variable margin rate for returning customers
CAC	Cost to acquire new customers

See all Contribution Margin metrics →