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.
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "Gross Adds" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Sanity-check with a related calculator from the same category on MetricKit.
- Read the related guide (e.g., Sales ops metrics hub: quota, pipeline, win rate, and capacity planning) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Retention Curve Calculator: Model a simple cohort retention curve (logo retention) and translate it into expected revenue and gross profit over time.
- Two-stage Retention Curve Calculator: Model a retention curve with different churn rates for early months vs steady-state, and estimate expected value over time.
- Revenue Retention Curve Calculator: Model GRR and NRR over time from monthly expansion, contraction, and churn assumptions (existing cohort only).
- Unit Economics Dashboard Calculator: Compute a unit economics snapshot: gross profit LTV, CAC payback, LTV:CAC, and break-even targets from a few inputs.
- Cohort Payback Curve Calculator: Estimate when a cohort pays back CAC using a simple retention curve (two-stage churn) and optional expansion.
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.