What is New MRR/ARR?

New MRR or ARR captures the recurring revenue from newly acquired customers — not expansions, renewals, or upsells. It's a direct reflection of net-new logo acquisition and the effectiveness of your prospecting, demo-to-close motion, and outbound/BDR pipeline.

Formulas:

• New MRR = Sum of recurring revenue from new customers this month
• New ARR = Sum of recurring revenue from new customers this year (or quarter), annualized

Tip: If your business reports both MRR and ARR, just multiply New MRR by 12 to get New ARR.

Why It Matters in B2B SaaS

• It’s the core sales performance number. New MRR/ARR shows how much new business your reps are bringing in — essential for evaluating pipeline quality, win rates, and quota performance.
• It highlights deal velocity and volume. This metric reflects your team's ability to close new logos at pace, especially important in early-stage or high-growth companies.
• It fuels revenue predictability. The more consistently you drive new MRR/ARR, the more confidently you can model next quarter's growth.
• It separates true growth from retention. You can grow ARR by reducing churn or expanding accounts — but only new MRR/ARR shows how your top-of-funnel engine is performing.

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How to Measure New MRR/ARR

1. Filter for all newly closed-won deals within the measurement period
2. Ensure only first-time customers are included
3. Calculate their contracted recurring revenue (monthly or annual)
4. Exclude expansions, renewals, and any one-time or usage-based charges

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Best Practices

• Track by rep, segment, and product line to understand which parts of the business are driving growth
• Tie SDR/BDR activity to New MRR/ARR contribution, not just meetings booked
• Pair this metric with Win Rate and Sales Cycle Length for a fuller picture of GTM efficiency
• Review it weekly in pipeline meetings to avoid surprises at the end of the quarter