Definition
New MRR is recurring revenue added from brand-new customers in a period (excluding expansions from existing customers).
Example
If you close 20 new customers at $500 MRR each, new MRR is $10,000.
How to use it
- Use New MRR to measure new customer acquisition output.
- Segment by channel and plan to learn where new customers stick.
- Separate reactivations from true new logos for clarity.
- Track new MRR with payback to see if growth is cash-feasible.
Common mistakes
- Counting expansion or upgrades as new MRR.
- Mixing one-time fees with recurring revenue.
- Including reactivations without labeling them separately.
- Counting full contract value when revenue ramps over time.
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 "New MRR" 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.
- Use a calculator that references this term (e.g., MRR Waterfall Calculator) to sanity-check assumptions.
- Read the related guide (e.g., MRR waterfall: reconcile starting MRR to ending MRR) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- MRR Waterfall Calculator: Build an MRR waterfall: starting MRR + new + expansion - contraction - churn = ending MRR.
- Net New MRR Calculator: Calculate net new MRR from new, expansion, contraction, and churned MRR.
- MRR Forecast Calculator: Forecast MRR over time using new MRR plus expansion, contraction, and churn rates.
Guides
- MRR waterfall: reconcile starting MRR to ending MRR: A practical MRR waterfall guide: starting MRR + new + expansion - contraction - churn = ending MRR, with an example and pitfalls.
- MRR forecasting: a simple bridge model (new, expansion, churn): A practical way to forecast MRR using a monthly bridge: starting MRR + new MRR + expansion - contraction - churn.