Financial term · Reviewed August 17, 2026
Gross revenue retention (GRR)
Gross revenue retention (GRR): Recurring revenue retained from a starting cohort after churn and contraction, excluding expansion. The Net Revenue Retention Calculator returns this figure from net retention = (starting recurring revenue + expansion − contraction − churn) ÷ starting revenue. At that calculator’s documented worked-example inputs the net revenue retention is 104.0%; holding every other input steady, moving starting recurring revenue from $80,000 to $120,000 moves it from 103.3% to 105.0%, a spread of 1.7%.
Excluding expansion shows whether the existing base is holding on its own merits. Net retention can look excellent while a handful of large accounts grow enough to paper over churn happening everywhere else. Gross retention has nowhere to hide, which is exactly why it is the less flattering number and the more informative one.
| Term | Gross revenue retention (GRR) |
|---|---|
| Category | Startup & SaaS |
| How it is found | Net retention = (starting recurring revenue + expansion − contraction − churn) ÷ starting revenue |
| Worked example | Net revenue retention: 104.0% |
| Computed by | Net Revenue Retention Calculator |
| Related terms | 5 defined in this glossary |
Before you rely on it
What to check
Read it beside net revenue retention, not instead of it.
The common error
Where people go wrong with gross revenue retention (GRR)
Reporting only net retention. A company at 120% net and 78% gross is losing customers steadily while telling a growth story, and both numbers are true.
Worked through
Gross revenue retention (GRR) in plain numbers
A subscription business starts a year with $1,000,000 in recurring revenue from a group of customers. During the year, some cancel, taking $80,000 with them. Others downgrade, reducing revenue by $40,000. Gross revenue retention is ($1,000,000 − $80,000 − $40,000) ÷ $1,000,000, which is 88%. Upgrades are ignored, so GRR can never exceed 100%. If the same customers also expanded by $150,000, net revenue retention would be ($880,000 + $150,000) ÷ $1,000,000, or 103%; the two numbers together separate leaking customers from growing ones.
Easily confused
Gross revenue retention (GRR) and its neighbours
GRR is not net revenue retention or logo retention. Net revenue retention includes expansion from the same customers, so it can rise above 100%. Logo retention counts customers, not dollars, so it hides the size of who left. GRR shows how much revenue survives before any upsell, which is the floor of the base; it is also not churn rate, though it is closely related: churn plus contraction is the complement of GRR. Report the cohort, the period and the definition each time, because they differ across companies.
In real decisions
Where gross revenue retention (GRR) turns up
Subscription and software companies use GRR to judge the health of the base and the quality of their product; investors compare it across companies. Finance teams use it to forecast revenue and set targets for customer success; it highlights whether growth depends on constantly replacing lost revenue. A high GRR supports valuations and lower risk. Companies segment it by customer size and product to find where leakage is concentrated.
Know the edges
Where gross revenue retention (GRR) stops being reliable
GRR depends on how a cohort and a period are defined, and how discounts, pauses and reactivations are treated. Monthly and annual calculations differ. It says nothing about new customers or expansion; a high figure can mask growing dependence on a few large accounts, and use it with net retention, logo retention and cohort curves to see the whole pattern.
Quick answers
What people ask about gross revenue retention (GRR)
Why is GRR capped at 100%? Because it ignores expansion and counts only losses from cancellations and downgrades. It shows how much of the starting revenue survives.
What is a good GRR? Depends on customers and pricing. Companies selling to large enterprises often see ninety percent or more, and those selling to small businesses lower. Compare with peers of similar size.
How is it different from logo retention? Logo retention counts customers. GRR counts dollars, so losing one large customer hurts GRR more than losing several small ones.
How is GRR affected by discounts? Discounts given at renewal reduce the retained revenue and count as contraction. Track them to see pricing pressure.
Put it to work
How gross revenue retention (GRR) is calculated
At the net revenue retention calculator’s worked-example inputs, net revenue retention is 104.0%, gross revenue retention is 89.0%. Moving starting recurring revenue from $80,000 to $120,000 moves that first figure from 103.3% to 105.0%.
Open the Net Revenue Retention Calculator →
Definitions vary by company; keep cohort, period and revenue treatment consistent.
Related vocabulary
Terms used alongside this one
Keep reading
Nearby in the glossary
- ← Gross rent multiplier (GRM)
- Heart-rate reserve →
- All 174 defined termsThe complete Free Calculators Online financial glossary.