Net New ARR Calculator
Net New ARR is the cleanest growth metric in SaaS — new bookings plus expansion revenue, minus churn and contraction. It strips away one-time renewals and reveals whether the customer book is actually growing.
Why Net New ARR Beats Bookings
Total bookings include renewals, which can mask leakage. Net new ARR isolates growth: new customer wins, expansion within existing customers, minus all churn and contraction. It is the single most-tracked metric in SaaS board decks per Bessemer State of the Cloud 2025.
The Three Drivers Of Net New ARR
New logo acquisition (top of funnel quality), expansion motion (upsell, cross-sell, seat expansion), and gross retention (preventing churn). Top-quartile SaaS gets 40% of net new ARR from expansion. Companies with under 20% expansion revenue typically have weaker NDR scores.
Quarterly vs Annual Reporting
Public SaaS reports net new ARR quarterly. Early-stage startups often report monthly net new MRR. The annualised version multiplies quarterly net new ARR by four — but this can be misleading during seasonal sales cycles like Q4 enterprise closing pushes.
Source: Bessemer State of the Cloud 2025, OpenView SaaS Benchmarks 2025. Last updated: May 2026.