> ## 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 %: First-Time Buyer Gross Profit Rate

> Track what percentage of new customer revenue remains as gross profit after product costs. Measure first-time buyer margin efficiency.

<Tip>
  The percentage of first-time buyer revenue remaining as gross profit after subtracting product costs.
</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) ) ÷ [**New Customer Gross Revenue**](/reference/metrics/orders/revenue/new-customer-gross-revenue) × 100
</Info>

### Formula Components

| Metric                                                                                         | Definition                                                                |
| ---------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------- |
| [**New Customer Gross Revenue**](/reference/metrics/orders/revenue/new-customer-gross-revenue) | Total product revenue from first-time buyers before discounts and refunds |
| [**New Customer COGS**](/reference/metrics/orders/cogs/new-customer-cogs)                      | Cost of goods sold for first-time buyer orders                            |

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

***

## Example

A supplement brand analyzes first-time buyer margins across quarters:

| Quarter | NC Gross Revenue | NC COGS  | NC Product Margin % |
| ------- | ---------------- | -------- | ------------------- |
| Q1      | \$42,000         | \$14,700 | **65.0%**           |
| Q2      | \$56,500         | \$18,645 | **67.0%**           |
| Q3      | \$61,200         | \$19,584 | **68.0%**           |

Q3's higher margin (68%) indicates improved product mix or cost efficiency for new customers.

***

## How It Works

This metric calculates the percentage of gross revenue retained after product costs for new customer orders only. It divides the difference between [New Customer Gross Revenue](/reference/metrics/orders/revenue/new-customer-gross-revenue) and [New Customer COGS](/reference/metrics/orders/cogs/new-customer-cogs) by gross revenue, then multiplies by 100. Higher percentages mean more margin retained per dollar of new customer revenue.

***

## When to Use

| Scenario                      | Action                                                                |
| ----------------------------- | --------------------------------------------------------------------- |
| Evaluating acquisition offers | Check if new customer promotions erode product margins                |
| Comparing customer segments   | Compare to returning customer margin to identify differences          |
| Product mix analysis          | Identify if first-time buyers gravitate toward higher-margin products |
| Setting pricing strategy      | Ensure prices support target margins for customer acquisition         |

***

## Related Metrics

| Metric                                                                                              | Relationship                            |
| --------------------------------------------------------------------------------------------------- | --------------------------------------- |
| [New Customer COGS](/reference/metrics/orders/cogs/new-customer-cogs)                               | Product costs subtracted from revenue   |
| [New Customer Gross Revenue](/reference/metrics/orders/revenue/new-customer-gross-revenue)          | The revenue base for this calculation   |
| [New Customer COGS Gross Rate](/reference/metrics/orders/cogs/new-customer-cogs-gross-rate)         | The inverse—shows costs as % of revenue |
| [New Customer Product Margin](/reference/metrics/orders/product-margin/new-customer-product-margin) | Dollar amount instead of percentage     |

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