What is New MRR?
How to Calculate New MRR
Calculate New MRR using either method:
New MRR = Sum of MRR contributed by fresh subscriptions added during the month
or
New MRR = New customers * MRR per customer
Example: If you add five new subscriptions worth $100, $200, $300, $400, and $500, your New MRR is $1,500.
Key exclusions:
Setup fees or one-time charges
Revenue from existing customers
Expected revenue from trial customers
Ultimately, New MRR focuses exclusively on the revenue generated from new customers acquired within the month. This sharp focus helps isolate the performance of customer acquisition strategies. It provides a clear signal of new business growth, separate from existing customer revenue streams.
How New MRR Fits Into Your MRR Framework
New MRR integrates with other key revenue metrics to provide complete growth visibility. High-performing companies actively test their pricing strategies to stay competitive and drive growth.
Core MRR components:
New MRR: Revenue from newly acquired customers
Expansion MRR: Additional revenue from existing customers through upgrades and add-ons
Churn MRR: Revenue lost from downgrades and cancellations
These core components combine to calculate your Net New MRR using a simple formula: (New MRR + Expansion MRR) - Churn MRR. This final metric gives you a holistic view of your monthly revenue growth. Understanding this calculation is fundamental for any SaaS business.
Why New MRR Matters for SaaS Growth
New MRR directly measures customer acquisition success and business health. Companies with strong retention are more likely to achieve rapid growth.
Key benefits for RevOps teams:
Growth momentum tracking: Shows month-over-month acquisition trends
Early warning system: Signals potential go-to-market issues when it declines
Investment prioritization: Guides marketing and sales resource allocation
Using New MRR for Strategic Growth
New MRR serves as a critical input for strategic decisions. Use it to optimize acquisition efficiency and team performance.
Strategic applications:
CAC validation: Ensure customer acquisition cost stays below New MRR
Team alignment: Create shared KPIs for sales and marketing teams
Investment decisions: Guide budget allocation based on acquisition performance
Track New MRR alongsidelifetime valuefor complete unit economics visibility. High-growth companies often improve their pricing strategies every six months to maintain their market position.
Churn plays a crucial role in deciding the health of a business and an understanding of the Net New MRR is important.
Monetize and Scale With Confidence
Accurate New MRR tracking requires automated systems that scale with your business. Manual spreadsheet calculations create errors and don't support growth.
According to 2025 research, 77% of companies now prioritize AI and automation investments. RevOps teams using automated billing platforms report:
95% accuracy improvement in revenue data
60% faster month-end close cycles
Real-time visibility into acquisition metrics
Chargebee's revenue growth management platform automates New MRR tracking and integrates with your RevOps stack. See how Chargebee helps you monetize with confidence — book your personalized demo today.
Frequently Asked Questions About New MRR
New MRR vs. expansion MRR
New MRR comes from newly acquired customers, while expansion MRR is additional revenue from existing customers through upgrades or add-ons.
How often should I track New MRR?
Track New MRR monthly to get timely insights without reacting to daily fluctuations.
What is a good New MRR growth rate for a SaaS company?
Early-stage startups typically aim for 15-20% month-over-month growth, while established companies target 5-10% steady growth.
Additional reads
