> ## 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 CM2 ROAS: First-Order Variable Margin ROAS

> Track new customer CM2 ROAS for your Shopify store. Measure variable margin generated per dollar of ad spend on first orders.

<Tip>
  New Customer CM2 ROAS measures how much variable margin (after COGS and fulfillment) you generate from first orders per dollar of ad spend.
</Tip>

## Formula

<Info>
  **New Customer CM2 ROAS** = **New Customer CM2** ÷ **Ad Spend**
</Info>

### Formula Components

| Metric                                                                                 | Definition                                   |
| -------------------------------------------------------------------------------------- | -------------------------------------------- |
| [**New Customer CM2**](/reference/metrics/orders/contribution-margin/new-customer-cm2) | Variable margin 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 **\$22,000** CM2 from new customers and spends **\$15,000** on ads.

| Component                 | Value    | Calculation                 |
| ------------------------- | -------- | --------------------------- |
| New Customer CM2          | \$22,000 | First-order variable margin |
| Ad Spend                  | \$15,000 | Marketing cost              |
| **New Customer CM2 ROAS** | **1.47** | \$22,000 ÷ \$15,000         |

***

## How It Works

New Customer CM2 ROAS shows margin-adjusted acquisition efficiency. Unlike revenue-based ROAS, this accounts for product costs and fulfillment—giving a more realistic picture of acquisition economics.

***

## Benchmarks

| Rating       | Range     |
| ------------ | --------- |
| Excellent    | > 2.0     |
| Good         | 1.2 – 2.0 |
| Break-even   | 1.0       |
| Unprofitable | \< 1.0    |

A CM2 ROAS below 1.0 means fulfillment-adjusted margin doesn't cover ad spend.

***

## Related Metrics

| Metric                                                                                           | Relationship                |
| ------------------------------------------------------------------------------------------------ | --------------------------- |
| [New Customer CM2](/reference/metrics/orders/contribution-margin/new-customer-cm2)               | Numerator (variable margin) |
| [CM2 ROAS](/reference/metrics/orders/performance/cm2-roas)                                       | Overall CM2 ROAS            |
| [Returning Customer CM2 ROAS](/reference/metrics/orders/performance/returning-customer-cm2-roas) | Repeat order CM2 ROAS       |

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