Net new MRR calculator
Net new MRR is a recurring-revenue metric, calculated as New + Expansion − Contraction − Churned. The movement that explains the change.
- Formula
- New + Expansion − Contraction − Churned
Net new MRR
Net new MRR = New + Expansion − Contraction − Churned$
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Net new MRR
$25,500
How it’s worked out
- 1New + expansion − contraction − churned$24,000 + $9,500 − $2,200 − $5,800$25,500
Runs in your browser; nothing you type is sent anywhere. Amounts in US dollars.
How to read it
Net new MRR is the month's change in recurring revenue, broken into the four movements that caused it.
The breakdown matters more than the total: strong new MRR can hide rising churn.
Common mistakes
- Counting reactivations as new MRR without saying so.
- Including one-off fees.
Questions
- What goes into net new MRR?
- New MRR from new customers, plus expansion from existing ones, minus contraction from downgrades and churn from cancellations.
- Can net new MRR be negative?
- Yes — when churn and contraction exceed new and expansion MRR, recurring revenue is shrinking.
Read it with
The metrics read alongside this one, and the terms it is confused with.
- MRR vs ARRMRR is recurring revenue normalized to one month; ARR is the same figure annualized — ARR is MRR × 12, so the two never disagree about the business, only about the unit.Compare
- Net revenue retention vs gross revenue retentionNet revenue retention counts expansion from existing customers and can exceed 100%; gross revenue retention ignores expansion and can never exceed 100% — together they separate churn from upsell.Compare
- Logo churn calculatorLogo churn is a recurring-revenue metric, calculated as Customers lost ÷ starting customers.Calculator
- ARPA calculatorARPA is a unit-economics metric, calculated as MRR ÷ Active customers, per month.Calculator
- Magic number calculatorMagic number is a unit-economics metric, calculated as Net new ARR in the quarter ÷ prior-quarter S&M (equivalently (Δ quarterly revenue × 4) ÷ prior-quarter S&M).Calculator
- Net new MRRNet new MRR is a recurring-revenue metric, calculated as New + Expansion − Contraction − Churned.Term
The formula is the one the glossary states, and the arithmetic is unit-tested. A ratio with nothing to divide by shows a dash — undefined is not zero. General information, not financial advice.