Definition
Gross adds (meaning the total new customers or new MRR/ARR added in a period before churn) is a top-line growth input.
Formula
Gross adds = new customers acquired in the period (or new MRR/ARR before churn)
Example
If you sign 120 new customers or $80k of new ARR in a month, gross adds are 120 customers or $80k ARR.
How to use it
- Track gross adds with churn to understand net growth drivers.
- Use a consistent definition for what counts as a new customer.
Common mistakes
- Counting reactivations as new adds without disclosing it.
- Comparing gross adds across periods with different marketing intensity.
Measured as
Gross adds = new customers acquired in the period (or new MRR/ARR before churn)
Misused when
- Counting reactivations as new adds without disclosing it.
- Comparing gross adds across periods with different marketing intensity.
Operator takeaway
- Track gross adds with churn to understand net growth drivers.
- Use a consistent definition for what counts as a new customer.
- Keep Gross Adds consistent by cohort, segment, and period before you use it as a decision signal in planning or reporting.
- Interpret the metric alongside retention, margin, or payback so one ratio does not hide the real operating trade-off.
Next decision
- Read Sales ops metrics hub: quota, pipeline, win rate, and capacity planning if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
- Decide whether Gross Adds is a growth, retention, or efficiency signal before you set targets around it.
Where to use this on MetricKit
Guides
- Sales ops metrics hub: quota, pipeline, win rate, and capacity planning: A practical hub for sales ops planning: quota attainment, pipeline coverage, required pipeline, sales capacity with ramp, and OTE math.
- Churn: How to measure churn rate correctly: A guide to churn rate: customer churn vs revenue churn, measurement choices, and how to track churn by cohort.