What is Gross Net New ARR?
Net New ARR is the net change in Annual Recurring Revenue (ARR) over a period—what you _actually_ grew after you add expansion and win-backs and subtract the revenue you lost from churn and downgrades. If you want to sanity-check the baseline before you start, it helps to anchor on your starting ARR and then reconcile the movement period-by-period with an ARR Growth Rate view.
In practice, Net New ARR is the number that connects revenue motion to operator decisions: it rolls straight into runway and burn conversations (because recurring growth changes how long cash lasts), and it shapes the story behind “healthy growth” metrics like Burn Multiple and Rule of 40—especially when you’re comparing growth efficiency across months or quarters.
Gross New ARR (as defined in this calculator) focuses on the _engine that adds ARR_ before leakage: it isolates new-customer ARR and optional reactivation ARR (win-backs). That makes it ideal for diagnosing acquisition performance alongside unit economics—like whether your CAC Payback Period still makes sense at current conversion rates and pricing—and for separating “we grew because we acquired” from “we grew because existing customers expanded.” If you want to break the net figure into clean components, pair this with Expansion MRR, Contraction MRR, Churn Rate, and Churned MRR to see exactly which lever is driving (or killing) growth.
Formula
Example
Starting ARR: $3,000,000
New ARR (new customers): $350,000
Reactivation ARR: $25,000
Expansion ARR: $200,000
Contraction ARR: $60,000
Churned ARR: $90,000
Gross New ARR = $350,000 + $25,000 = $375,000
Added ARR = $350,000 + $200,000 + $25,000 = $575,000
Lost ARR = $60,000 + $90,000 = $150,000
Net New ARR = $575,000 − $150,000 = $425,000
Ending ARR = $3,000,000 + $425,000 = $3,425,000
ARR Growth = ($425,000 ÷ $3,000,000) × 100 = 14.2%