Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Excluding expansion revenue entirely is exactly what makes GRR a cleaner measure of pure churn than NRR, since a company could theoretically have zero net revenue loss on paper while still losing a meaningful share of its original customer base to churn, offset entirely by a smaller number of customers expanding.
Before you rely on it
What to check
Use one consistent starting cohort and measurement period when calculating GRR, since mixing cohorts or periods produces a figure that doesn't cleanly isolate churn the way the metric is meant to.
The common error
Where people go wrong with gross revenue retention calculator
Treating a strong NRR figure as proof GRR is also healthy. A company can post NRR above 100% from expansion revenue while GRR, which strips expansion out entirely, reveals real underlying churn that NRR alone doesn't show.
Sensitivity evidence
How starting recurring revenue changes the gross revenue retention
| Starting recurring revenue | Gross revenue retention | Retained recurring revenue | Lost recurring revenue |
|---|---|---|---|
| $80,000 | 86.3% | $69,000 | $11,000 |
| $90,000 | 87.8% | $79,000 | $11,000 |
| $100,000worked example | 89.0% | $89,000 | $11,000 |
| $110,000 | 90.0% | $99,000 | $11,000 |
| $120,000 | 90.8% | $109,000 | $11,000 |
Every input, tested
Which input moves the gross revenue retention most
| Input | Tested from | To | Gross revenue retention at each end | Swing |
|---|---|---|---|---|
| Starting recurring revenue | $90,000 | $110,000 | 87.8% to 90.0% | 2.2% (2.5%) |
| Churned revenue | $6,300 | $7,700 | 89.7% to 88.3% | 1.4% (1.6%) |
| Contraction revenue | $3,600 | $4,400 | 89.4% to 88.6% | 0.800% (0.9%) |
Two variables at once
Gross revenue retention by starting recurring revenue and contraction revenue
| Starting recurring revenue \ Contraction revenue | $3,200 | $4,000 | $4,800 |
|---|---|---|---|
| $80,000 | 87.3% | 86.3% | 85.3% |
| $90,000 | 88.7% | 87.8% | 86.9% |
| $100,000 | 89.8% | 89.0% | 88.2% |
| $110,000 | 90.7% | 90.0% | 89.3% |
| $120,000 | 91.5% | 90.8% | 90.2% |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Starting recurring revenue | $100,000 |
| Contraction revenue | $4,000 |
| Churned revenue | $7,000 |
| Gross revenue retention | 89.0% |
| Retained recurring revenue | $89,000 |
| Lost recurring revenue | $11,000 |
Where the inputs come from
Starting recurring revenue is the revenue from a cohort of customers at the beginning of the period, and contraction and churned revenue are what that cohort lost through downgrades and cancellations. Exclude expansion, since gross retention measures only losses. Use a consistent period, usually a year, and only revenue from customers who were customers at the start. Check that discounts and credits are treated the same way each period.
When the result stops applying
Gross retention ignores expansion, so it can look poor for a business that grows strongly through upsells. Definitions of contraction and churn vary. A short window can hide annual contract cycles. It is a revenue measure and does not count customer numbers.
What to compare it with
See the net view including expansion on the net revenue retention calculator, and customer counts on the SaaS churn page. The MRR growth and LTV:CAC calculators connect retention to growth and value. Surveys and cohort analysis show why customers leave.
People also ask
Frequently asked questions
What is a good gross revenue retention?
Around 90% or higher is strong for business software, with lower figures common for small-business and consumer products.
Can gross revenue retention exceed 100%?
No. It counts only losses from the starting revenue, so 100% is the maximum. Net retention can exceed 100% because it includes expansion.
Why report both gross and net retention?
Gross shows how well you keep customers, and net shows the effect of expansion on top. Together they show whether growth is durable.