New MRR
The recurring revenue from first-time customers — the cleanest read on whether acquisition is working.
What is it?
New MRR is the monthly recurring revenue added by customers who signed up for the first time in the period. A first-time customer on a $49/month plan adds $49; a $600/year plan adds $50 once you normalise it to a month. Only genuinely new logos count — customers who cancelled and came back are reactivation, not new.
It is the purest signal of acquisition. Expansion and reactivation flatter your top line with revenue from customers you already earned; New MRR is the revenue you had to go out and win, so when it moves, your funnel moved.
How to calculate?
Sum the normalised monthly recurring revenue of every first-time customer who started paying in the period. Annual and multi-year contracts are divided down to a monthly figure so a $600/year signup and a $50/month signup count the same.
New MRR is one of five MRR movements — new, expansion, contraction, churn and reactivation — and the first term in net new MRR: new plus expansion plus reactivation, minus contraction and churn. Read it alongside conversion rate and average sales price to see whether new revenue is coming from more customers or bigger ones.