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.
Measured as
Measure New MRR on the same customer segment, time window, and revenue basis each time you review it.
Misused when
- 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.
Operator takeaway
- 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.
- Keep New MRR 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
- Quantify the impact with MRR Waterfall Calculator if you need to turn the definition into an operating assumption.
- Read MRR waterfall: reconcile starting MRR to ending MRR if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
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: Monthly Projection, Formula, and Example: Project future MRR using new MRR, expansion, contraction, churn, and time horizon inputs with a simple monthly forecast model.
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 Forecast Formula: Example, Template, and Monthly Bridge: Learn how to forecast MRR with a monthly bridge model using starting MRR, new MRR, expansion, contraction, and churn.