Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Net revenue retention and gross revenue retention answer different questions about the same customer cohort. NRR can exceed 100% because expansion revenue from existing customers offsets churn, while GRR, which excludes expansion entirely, can never go above 100% and shows the retention story without that offsetting effect.
Before you rely on it
What to check
Report NRR and GRR together rather than either alone, since a healthy NRR can be masking meaningful churn that expansion revenue happens to be covering up.
The common error
Where people go wrong with net revenue retention calculator
Reporting only NRR and treating a figure above 100% as proof churn isn't a problem. A strong NRR built on a few big expansion accounts can be quietly coexisting with a churn rate that GRR would reveal clearly on its own.
Sensitivity evidence
How starting recurring revenue changes the net revenue retention
| Starting recurring revenue | Net revenue retention | Gross revenue retention |
|---|---|---|
| $80,000 | 105.0% | 86.3% |
| $90,000 | 104.4% | 87.8% |
| $100,000worked example | 104.0% | 89.0% |
| $110,000 | 103.6% | 90.0% |
| $120,000 | 103.3% | 90.8% |
Every input, tested
Which input moves the net revenue retention most
| Input | Tested from | To | Net revenue retention at each end | Swing |
|---|---|---|---|---|
| Expansion revenue | $13,500 | $16,500 | 102.5% to 105.5% | 3.0% (2.9%) |
| Churned revenue | $6,300 | $7,700 | 104.7% to 103.3% | 1.4% (1.3%) |
| Starting recurring revenue | $90,000 | $110,000 | 104.4% to 103.6% | 0.808% (0.8%) |
| Contraction revenue | $3,600 | $4,400 | 104.4% to 103.6% | 0.800% (0.8%) |
Two variables at once
Net revenue retention by starting recurring revenue and expansion revenue
| Starting recurring revenue \ Expansion revenue | $12,000 | $15,000 | $18,000 |
|---|---|---|---|
| $80,000 | 101.3% | 105.0% | 108.7% |
| $90,000 | 101.1% | 104.4% | 107.8% |
| $100,000 | 101.0% | 104.0% | 107.0% |
| $110,000 | 100.9% | 103.6% | 106.4% |
| $120,000 | 100.8% | 103.3% | 105.8% |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Starting recurring revenue | $100,000 |
| Expansion revenue | $15,000 |
| Contraction revenue | $4,000 |
| Churned revenue | $7,000 |
| Net revenue retention | 104.0% |
| Gross revenue retention | 89.0% |
Where the inputs come from
Starting recurring revenue is the recurring revenue from a defined cohort of customers at the start of the period, usually twelve months ago. Expansion revenue is upgrades, added seats and price increases from those same customers, contraction is downgrades, and churn is revenue from customers who left. Include only revenue from customers who existed at the start, and exclude new logos. Use one consistent period, typically a year.
When the result stops applying
NRR can look healthy because a few large customers expand while many small ones leave, so check retention by segment. Definitions differ by company, such as whether price increases count. A short cohort period can mislead. NRR does not include new customer growth, which must be considered separately.
What to compare it with
See the loss-only view on the gross revenue retention calculator, and the growth picture on the MRR growth page. The customer churn, LTV:CAC and Rule of 40 calculators show related health measures. Improving onboarding and adding upsell paths lifts NRR.
People also ask
Frequently asked questions
What is a good net revenue retention?
Above 100% is good, meaning existing customers grow. Many strong SaaS companies have 105% to 120%, and enterprise-focused ones can exceed that.
What is the difference between NRR and GRR?
NRR includes expansion revenue, so it can exceed 100%. GRR counts only losses from churn and contraction and cannot exceed 100%.
Why does NRR matter to investors?
It shows whether the customer base grows by itself, which makes new customer spending more efficient and the revenue more durable.