Definition
Net new MRR is new MRR plus expansion MRR minus churned and contraction MRR.
Why it matters
It is the clearest monthly growth signal for subscription businesses.
Pricing implications
Price increases can raise net new MRR if churn stays below break-even. Monitor components separately.
Measurement tips
Track net new MRR by segment to identify growth drivers.
Checklist
- Separate new, expansion, churned, and contraction MRR.
- Compare net new MRR to starting MRR for growth rate.
- Track net new MRR by plan.
- Monitor net new MRR after pricing changes.
- Avoid mixing one-time revenue into MRR.
- Use consistent time windows.
- Review net new MRR monthly.
- Validate data with finance.