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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 MRRNet new MRR = New + Expansion − Contraction − Churned
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Net new MRR

$25,500

How it’s worked out

  1. 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.

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.

Works in your QuickBooks Online or Xero file

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