ARR Net New Bookings Calculator
Build your ARR bridge in seconds — compute net new bookings, gross retention, and net revenue retention from all four ARR components.
What Is Net New ARR?
Net New ARR is the single most important growth metric for any SaaS company. It equals New Customer ARR + Expansion ARR − Churned ARR − Contraction ARR. A positive net new ARR means the business is growing; a negative number means the company is shrinking in revenue terms, even if it still has customers. The ARR bridge — breaking net new into all four components — is now standard in board reporting and fundraising decks. According to Bessemer Venture Partners' 2024 Cloud benchmarks, the median net new ARR growth rate for Series B SaaS companies is 80–120% year-over-year. Last updated: May 2026.
Gross Retention vs Net Revenue Retention
Gross Revenue Retention (GRR) measures how much of your starting ARR you kept, excluding any expansion. GRR is capped at 100% because expansion is not counted. GRR = (Starting ARR − Churn − Contraction) / Starting ARR. Net Revenue Retention (NRR) adds expansion and can exceed 100%. NRR = (Starting ARR + Expansion − Churn − Contraction) / Starting ARR. Top-quartile SaaS companies maintain NRR above 120% — meaning their existing customers grow revenue faster than new customers churn. OpenView Partners' 2024 benchmarks show that companies with NRR > 120% grow 2× faster than those below 100% NRR, even with identical new logo sales.
How to Use This Calculator
Enter the four ARR movement components for a single period (month, quarter, or year): new customer ARR from logos closed, expansion ARR from upsells and seat additions in existing accounts, churned ARR from full cancellations, and contraction ARR from downgrades. You also need the starting ARR for the period to calculate GRR and NRR — use the total ARR at the beginning of the period as your denominator. The calculator outputs net new ARR, gross retention, NRR, and expansion ratio (expansion / churn). Use the expansion ratio to quickly see if your expansion motion is outpacing churn — a ratio above 2 is strong.
Frequently Asked Questions
What is net new ARR?
Net new ARR = New Customer ARR + Expansion ARR − Churned ARR − Contraction ARR. It is the definitive measure of growth quality in a subscription business. Positive net new ARR means the company is growing. Source: Bessemer Venture Partners Cloud benchmarks.
What is the difference between gross retention and net retention?
Gross Revenue Retention (GRR) measures how much ARR you retained excluding expansion — capped at 100%. Net Revenue Retention (NRR) includes expansion and can exceed 100%. GRR = (Starting ARR − Churn − Contraction) / Starting ARR. NRR adds expansion to the numerator.
What is a good NRR for SaaS?
According to OpenView Partners' 2024 SaaS Benchmarks, median NRR across all SaaS is 102%. Top quartile is 120%+. Best-in-class companies like Snowflake and Datadog sustain 130–160% NRR. Below 100% NRR means the existing customer base is shrinking in revenue terms.
How is net new ARR reported for fundraising?
VCs want net new ARR broken into four components: new logo ARR, expansion ARR, churned ARR, and contraction ARR — an ARR bridge or waterfall. This shows growth quality and whether it is driven by new logos, expansion, or is masked by churn. Bessemer requires this at Series B.
What is contraction ARR vs churn ARR?
Churn ARR is revenue from customers who fully cancelled. Contraction ARR is revenue lost from customers who downgraded but stayed. Both reduce net new ARR — churn signals product failure, contraction often signals pricing or budget issues.