MRR Movements

MRR movements break down the change in your MRR from one month to the next into named components, so you can see why the number moved — not just that it went up or down. Presented as a bridge or waterfall, they turn a single figure into a story about acquisition, growth, and loss.

The five movements

Each month's ending MRR is the prior month's MRR plus and minus these:

• New MRR — recurring revenue from brand-new customers.
• Expansion MRR — added revenue from existing customers via upgrades, seats, or usage. See expansion revenue.
• [Reactivation](/glossary/reactivation) MRR — revenue from previously churned customers who returned.
• Contraction MRR — revenue lost to downgrades from customers who stay. See contraction revenue.
• Churned MRR — revenue lost to full cancellations.

A worked example

Start the month at $50,000 MRR. You add $6,000 new, $3,000 expansion, and $500 reactivation. You lose $1,500 to contraction and $2,000 to churn.

Ending MRR = $50,000 + $6,000 + $3,000 + $500 − $1,500 − $2,000 = $56,000. Net new MRR for the month is $6,000, even though gross additions were $9,500.

Why the breakdown matters

Two companies can post the same net MRR growth while being wildly different businesses — one adding lots of new logos to offset heavy churn, the other growing almost entirely from expansion. The movement view exposes that. It also feeds retention metrics: net revenue retention is built directly from expansion, contraction, and churn on the existing base.