net new MRR

Net New MRR measures the total net change in a company's Monthly Recurring Revenue over a specific period, calculated by summing revenue from new customers (New MRR) and upgrades from existing customers (Expansion MRR), then subtracting revenue lost due to downgrades (Contraction MRR) and cancellations (Churn MRR). Unlike simple revenue growth metrics, Net New MRR provides the most honest view of a company's momentum because it explicitly accounts for the "leaky bucket" of churn; if this number is negative, the business is contracting regardless of how many new sales are made. It serves as the ultimate scorecard for growth efficiency, balancing the effectiveness of the sales team (acquisition) against the health of the product and customer success teams (retention).