How to calculate Net New MRR

Net new MRR is the change in monthly recurring revenue in a period: new and expansion revenue minus churn and contraction.

Formula

Net new MRR = new MRR + expansion MRR − contraction MRR − churned MRR

SQL query

This example assumes: mrr_changes(month, change_type, amount) with positive amounts. It is written in PostgreSQL syntax; date functions differ slightly in MySQL, BigQuery and SQLite, and your column names will differ from these.

SELECT month,
       SUM(CASE WHEN change_type IN ('new', 'expansion')       THEN amount ELSE 0 END)
     - SUM(CASE WHEN change_type IN ('contraction', 'churn')   THEN amount ELSE 0 END) AS net_new_mrr
FROM mrr_changes
GROUP BY month
ORDER BY month;

Common mistakes that make Net New MRR wrong

  • Make sure every change type is classified; an unclassified row breaks the reconciliation to total MRR.
  • It should equal this month's MRR minus last month's; check that identity.
  • Mixed currencies must be converted before summing.

Ask for Net New MRR in plain English

Instead of writing the query yourself, you can type the question. SchemaChat turns it into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. It does not replace your judgement about the definition: check that the query matches the formula your business uses.

  • What was net new MRR each month this year?
  • Show the new, expansion, contraction and churn components for last quarter.

Frequently asked questions

What is Net New MRR?
Net new MRR is the change in monthly recurring revenue in a period: new and expansion revenue minus churn and contraction.
How do you calculate Net New MRR?
Net new MRR = new MRR + expansion MRR − contraction MRR − churned MRR. The SQL example on this page shows the same calculation against a simple table.
What commonly goes wrong when calculating Net New MRR?
Make sure every change type is classified; an unclassified row breaks the reconciliation to total MRR.