Growth Efficiency Index
How much of every dollar you win actually survives as net growth after churn and contraction.
What is it?
Growth Efficiency Index is the share of your gross positive movement that survives as net growth — net new revenue divided by the sum of new, expansion and reactivation MRR. It tells you how much of every dollar you win actually stays after churn and contraction claw some back.
An index near 100% means almost all your gross adds convert to real growth; a low index means you are running hard just to stay in place, losing much of what you win to the back door. It reframes growth as an efficiency problem, not only a volume one.
How to calculate?
Divide net new revenue by gross positive MRR movements (new plus expansion plus reactivation) for the period. Fifty-six hundred of net new against seventy-six hundred of gross adds is an index of about 74%. Both terms use the same movement figures, so the index is internally consistent by construction.
Track it over time: a rising index means your growth is getting cleaner, a falling one means losses are eating a bigger share of every win, even when the top-line still grows.