Net new MRR
Net new MRR is the change in monthly recurring revenue over a period, built from four movements: new MRR from new customers, expansion MRR from upgrades, contraction MRR from downgrades, and churned MRR from cancellations. Net new MRR = new + expansion − contraction − churn. It distils a month of recurring-revenue movement into one figure while keeping the components visible so the source of growth or decline is clear.
What this means
Net new MRR is the period-over-period change in recurring revenue: new MRR (from newly acquired customers) plus expansion MRR (upgrades, add-ons, seat growth) minus contraction MRR (downgrades) minus churned MRR (cancellations). The result is the single number by which MRR moved.
Why the components matter
Two businesses can post the same net new MRR with very different health. One driven by strong expansion and low churn is durable; one propped up by heavy new-sales spend while existing revenue leaks is fragile. Keeping the four movements separate lets you see whether growth is built on retention or on constantly replacing lost revenue.
- Net new MRR = new + expansion − contraction − churn
- Four movements net to one growth figure
- Same net result can hide very different retention
Why it misleads
A healthy net new MRR can mask deteriorating retention if new sales are covering rising churn. It is also a flow, not a level — a strong month does not guarantee a strong base. Read net new MRR with retention metrics like net revenue retention to see whether the existing base is holding.
How it appears in analytics and logs
Positive net new MRR means recurring revenue grew that period; if it is positive only because of new sales while churn and contraction climb, the underlying retention is weakening beneath the headline.
Diagnostic use case
Use net new MRR to see whether a subscription business grew or shrank in a period, then read its four components to learn whether growth came from new sales, expansion, or reduced churn.
What WebmasterID can help detect
WebmasterID measures first-party subscription and upgrade events, providing the conversion signals that feed the new and expansion components of net new MRR.
Common mistakes
- Reading net new MRR without its four components.
- Letting new-sales growth hide rising churn and contraction.
- Confusing the monthly flow with the MRR level itself.
Privacy and accuracy notes
Net new MRR is computed from aggregate subscription amounts, not personal data. This page is educational, not legal advice.
Related pages
- Monthly recurring revenue (MRR)
Monthly recurring revenue (MRR) is the normalized, predictable subscription revenue a business expects each month. Annual and multi-month plans are divided down to a monthly figure so the run rate is comparable. MRR is decomposed into new, expansion, contraction, and churned components, and it deliberately excludes one-off and usage-based charges — so it is a run-rate concept, not booked or recognized revenue.
- Expansion MRR rate
Expansion MRR rate is the expansion revenue earned from existing customers in a period — upgrades, add-ons, and seat increases — divided by the MRR at the start of the period, as a percentage. It isolates the growth that comes from deepening relationships with current customers, separate from new-customer acquisition. A strong expansion rate indicates a product whose value grows with usage, often the engine behind net revenue retention above one hundred percent.
- Net revenue retention (NRR)
Net revenue retention (NRR), also called net dollar retention, measures how much recurring revenue a fixed cohort of customers produces at the end of a period versus the start, counting upgrades (expansion) and subtracting downgrades (contraction) and churn — but excluding revenue from brand-new customers. Above 100% means the cohort grew on its own. It is a subscription-economics convention, and definitions vary by vendor.
- Event Explorer
Subscription and upgrade events first-party.
Sources and verification notes
- developers.google.com — GA4 purchase / subscription eventsEvent basis; the MRR-movement formula is a SaaS convention.
Last reviewed 2026-06-24. Facts are checked against primary/official sources where available; uncertain specifics are marked “Data not yet verified” rather than guessed.