Gross Net New ARR Calculator

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 subtrac...

Gross New ARR / Net New ARR Calculator

Calculate Gross New ARR and Net New ARR for a period using standard SaaS components (New + Expansion + optional Reactivation - Contraction - Churn). Includes scenarios, tooltips, and a short interpretation section.

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ARR is treated as run-rate at the start of the period (not bookings or cash). Used to compute Ending ARR and ARR growth for the period.

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Annual recurring revenue added from brand-new customers (new logos) during the period, expressed as run-rate ARR.

Optional. Only include this if it is a distinct line item in your revenue movement reporting.

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ARR from customers who had churned previously and reactivated during the period (run-rate).

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Upsells/expansions from existing customers (upgrades, more seats, higher tiers), expressed as run-rate ARR.

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ARR lost from downgrades of existing customers. Enter as a positive number (the calculator subtracts it).

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ARR lost from cancellations in the period. Enter as a positive number (the calculator subtracts it).

Scenarios
Click a scenario to auto-fill typical ARR movement patterns and instantly recompute.
Balanced growthExpansion-ledChurn pressureStarting from $0 ARR

Results

  • Gross New ARR$
  • Net New ARR$
  • Ending ARR$
  • ARR growth (this period)— %

Enter your inputs above to calculate the results.

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

Gross New ARR = New ARR + Reactivation ARR
Added ARR = New ARR + Expansion ARR + Reactivation ARR
Lost ARR = Churned ARR + Contraction ARR
Net New ARR = Added ARR-Lost ARR
Ending ARR = Starting ARR + Net New ARR
ARR Growth (%) = Net New ARR / Starting ARR × 100

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%

Frequently Asked Questions

What’s the difference between Gross New ARR and Net New ARR in this calculator?

Gross New ARR is the ARR you add from new customers (plus reactivation ARR if you enable it). Net New ARR adjusts that for existing-customer movements by adding expansion and subtracting contraction and churn, so you see the true net change in ARR.

Why is my Net New ARR lower than Gross New ARR (or even negative)?

Because contraction and churn can outweigh your adds. If (Expansion + Gross New) < (Contraction + Churn), Net New ARR goes down—even if you closed new deals.

Where should I put “reactivated” customers—New ARR or Reactivation ARR?

If you track win-backs separately (churned customers who came back), toggle Include Reactivation ARR = Yes and enter it in Reactivation ARR. If you don’t track it separately, leave it off and keep New ARR as “new customers only.”

Should contraction and churn be entered as positive or negative numbers?

Enter them as positive ARR lost (e.g., 60,000), because the calculator subtracts them internally as losses.

Sources & Methodology