What is Net Revenue Retention (NRR)?

NRR measures the percentage of recurring revenue retained from existing customers over a period, factoring in expansions (upsells/cross-sells), contractions (downgrades), and churn (cancellations). An NRR above 100% means existing customers generate more revenue over time even without new customers.

What is a good NRR for SaaS?

Best-in-class SaaS companies (e.g., Snowflake, Twilio) achieve NRR of 120–140%+. Above 110% is strong. Between 100–110% is healthy. Below 100% means the business shrinks from existing customers alone, relying entirely on new sales to grow.

What is the difference between NRR and GRR?

Gross Revenue Retention (GRR) only counts contraction and churn — it caps at 100%. NRR includes expansion revenue too, so it can exceed 100%. GRR shows your "floor" of retention; NRR shows your full revenue trajectory from existing customers.

Should I calculate NRR monthly or annually?

Monthly NRR is common for tracking, but investors typically want annualized NRR. To annualize, raise your monthly NRR rate to the 12th power: (NRR_monthly/100)^12 × 100. This calculator returns the period NRR; adjust the period to match your reporting.

What counts as expansion MRR?

Expansion MRR includes revenue from existing customers who upgraded to a higher plan, purchased add-ons, increased seat count, or expanded usage. It does not include revenue from new customers — that is New MRR.

Net Revenue Retention Calculator

Name: Net Revenue Retention Calculator
Availability: InStock
Author: Nham Vu

Enter your starting MRR and expansion, contraction, and churn figures to calculate NRR — the key SaaS health metric.

MRR Inputs

Enter figures for a single month or quarter.

Starting MRR ($)

Total MRR from existing customers at the start of the period.

Expansion MRR ($)

Revenue added from upgrades and upsells to existing customers.

Contraction MRR ($)

Revenue lost from customers who downgraded their plan.

Churned MRR ($)

Revenue lost from customers who cancelled entirely.

Net Revenue Retention

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Enter values to calculate

0% 100% 150%+

MRR Breakdown

Starting MRR —

+ Expansion MRR —

− Contraction MRR —

− Churned MRR —

Ending MRR —

Gross Revenue Retention (GRR)

Retention without expansion — capped at 100%

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Summary

Enter your starting MRR and expansion, contraction, and churn figures to calculate NRR — the key SaaS health metric.

How it works

Enter the MRR at the start of the period (e.g., beginning of month or quarter).
Enter expansion MRR — revenue added from upgrades and upsells to existing customers.
Enter contraction MRR — revenue lost from downgrades by existing customers.
Enter churned MRR — revenue lost from customers who cancelled entirely.
The calculator divides ending MRR by starting MRR and multiplies by 100 to get NRR%.

Use cases

Track monthly or quarterly NRR to measure SaaS revenue health.
Benchmark your NRR against industry standards (>100% = best-in-class).
Identify whether expansion revenue offsets churn and contraction.
Model NRR scenarios to forecast revenue growth from existing customers.
Present NRR to investors as a key SaaS efficiency metric.
Compare NRR across cohorts to spot high-value customer segments.

Frequently Asked Questions

Last updated: 2026-07-01 · Reviewed by Nham Vu