Net New MRR
The real growth number: new + reactivation + expansion − contraction − churn.
Put this metric to work: explore FlowMRR's MRR movement analytics to track revenue movements, retention and forecasts from your own account.
Decomposes monthly growth into its five moving parts. A growing MRR can hide a leaky funnel if expansion is masking heavy churn — Net New MRR forces you to see each component.
Formula
Net New MRR = New + Reactivation + Expansion − Contraction − ChurnWorked example
New $5,000 + Reactivation $500 + Expansion $1,500 − Contraction $400 − Churn $2,100 = Net New MRR $4,500. Churn and contraction consume 50% of new MRR.
Illustrative comparisons
Composition healthThese unsourced ranges are illustrative scenarios, not measured industry benchmarks, percentiles or recommended targets. Their qualitative labels are editorial interpretations. Compare your own cohorts using the same segment, period, currency and measurement basis.
Why it matters
Founders staring only at MRR miss the composition story. If expansion is consistently bigger than churn, you have a real product. If new sales are masking heavy churn, you're running on a hamster wheel — paid acquisition keeps growth alive while the bucket leaks.
Common mistakes
- Conflating downgrades (contraction) with churn — they're recoverable differently.
- Not tracking reactivations separately — they're a leading indicator of win-back program ROI.
- Looking only at the headline net number instead of the five components.