Definition
The total change in MRR for a period after accounting for new, expansion, contraction, and churned MRR.
Formula
New MRR + Expansion MRR - Contraction MRR - Churned MRR
How to measure
Sum all MRR gained from new and expanding customers, then subtract all MRR lost to contraction and churn within the same period.
Why track it
Net new MRR is the single number that shows whether the business actually grew or shrank in a given month once every movement is netted out.
Example
A company adds $6,000 new, $4,000 expansion, loses $1,000 contraction and $2,000 churn, for $7,000 net new MRR.
FAQ
- What is Net New MRR?
- The total change in MRR for a period after accounting for new, expansion, contraction, and churned MRR.
- How do you calculate Net New MRR?
- New MRR + Expansion MRR - Contraction MRR - Churned MRR
- Why track Net New MRR?
- Net new MRR is the single number that shows whether the business actually grew or shrank in a given month once every movement is netted out.