The overall change in MRR over a period after combining all five movements — new, expansion, reactivation, contraction, and churn.
Net new MRR = new MRR + expansion MRR + reactivation MRR − contraction MRR − churned MRR
In a month you add £20,000 new, £8,000 expansion, and £2,000 reactivation MRR, and lose £5,000 contraction and £7,000 churn.
£20,000 + £8,000 + £2,000 − £5,000 − £7,000 = £18,000 net new MRR
Net new MRR is the bottom line of all your MRR movements. It adds up the revenue you gained — new customers, expansion from existing ones, and reactivations — and subtracts what you lost to contraction and churn. The result is the single number that tells you whether your recurring revenue grew or shrank this month, and by how much.
Because it nets the positives against the negatives, it cuts through the noise of individual movements. You can add a lot of new MRR and still go backwards if churn and contraction are heavier; net new MRR is what reveals that. A positive figure means the recurring base expanded, a negative figure means it contracted, and zero means you treaded water.
It is the direct link between MRR movements and your growth rate. This month's ending MRR is simply last month's MRR plus net new MRR, which is why it is the headline number on most growth dashboards and the cleanest way to see momentum at a glance.
Net new MRR is the truest single measure of monthly momentum. It nets every gain against every loss, so it exposes a leaky bucket that strong acquisition alone can hide, and it feeds straight into your growth rate — making it the number boards watch to judge whether growth is real and durable.
There is no absolute target; net new MRR is read as a growth rate against starting MRR. Early-stage SaaS chasing venture scale aim for net new MRR worth 10–20% of starting MRR each month, while mature businesses settle into steadier single-digit growth.
New MRR counts only revenue from brand-new customers. Net new MRR is the full picture — new plus expansion and reactivation, minus contraction and churn — so it shows the actual change in your total MRR.
Yes. If contraction and churn outweigh new, expansion, and reactivation in a period, net new MRR is negative and your recurring revenue has shrunk.
Your MRR growth rate is net new MRR divided by starting MRR. Ending MRR equals starting MRR plus net new MRR, so it is the direct driver of how fast your MRR compounds.
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