Net Revenue Retention Calculator
Calculate NRR (Net Revenue Retention) including expansion, contraction, and churn. Understand the true health of your customer revenue.
Quick Entry
Enter directly or calculate below
Revenue Movement
For a cohort of customers from the start of period
MRR from this cohort at period start
Upgrades, upsells, cross-sells
Downgrades, seat reductions
Customers who canceled
Customer Breakdown (Optional)
Understanding Net Revenue Retention
Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing customers over time, including expansion, contraction, and churn. It's the single best indicator of product-market fit and customer success.
NRR Formula
NRR = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR x 100
Or simply: Ending MRR from Cohort / Starting MRR from Cohort x 100
NRR vs GRR
Net Revenue Retention (NRR)
Includes expansion revenue. Can exceed 100%. Shows total customer revenue health.
Gross Revenue Retention (GRR)
Excludes expansion. Maximum is 100%. Shows baseline retention without upsells.
Why NRR Matters
- Growth efficiency: NRR above 100% means you grow even without new customers
- Product-market fit: High NRR indicates customers find increasing value
- Valuation impact: Companies with 120%+ NRR command premium valuations
- Unit economics: Expansion from existing customers has near-zero CAC
NRR Benchmarks by Stage
Early Stage
90-100% is acceptable while finding product-market fit
Growth Stage
100-110% shows healthy retention and some expansion
Scale Stage
110-120% indicates strong expansion motion
Best-in-Class
120%+ achieved by top SaaS companies
How to Improve NRR
- Drive expansion: Usage-based pricing, seat expansion, feature upsells
- Reduce churn: Better onboarding, proactive customer success, product improvements
- Minimize contraction: Add more value before renewal, justify ROI
- Land and expand: Start small and grow accounts over time
- Multi-product strategy: Cross-sell additional products to existing customers
Calculating NRR Correctly
- Use cohorts: Track the same group of customers over time
- Exclude new sales: Only measure existing customer revenue
- Annual calculation: Most commonly measured on 12-month basis
- Logo vs. revenue: Always use revenue, not customer count
Grow Faster Than Churn
The best defense against churn is a strong offense. Keep your pipeline full with qualified prospects while you optimize retention.
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