Calculate your net revenue retention (NRR) from starting MRR, expansion, downgrades, and churn, plus the expansion revenue needed to hit a target NRR.
Net Revenue Retention Formula
NRR = ((S + E - D - C) / S) * 100
- NRR is the net revenue retention (%)
- S is the starting recurring revenue from existing customers ($)
- E is the expansion revenue from those same customers during the period ($)
- D is the revenue lost to downgrades (contraction) during the period ($)
- C is the revenue lost to churned customers during the period ($)
The calculator’s default mode applies this formula directly. It also reports gross revenue retention alongside NRR, using the same inputs with expansion removed:
GRR = ((S - D - C) / S) * 100
The target mode solves for the minimum nonnegative expansion needed to meet or exceed a target retention rate T:
E = max(0, S * (T/100 - 1) + C + D)
The simple mode needs only two numbers. If you already know how much recurring revenue a customer cohort generates now versus at the start of the period, NRR is the ending figure divided by the starting figure, times 100. When the reporting interval is monthly, expandable details show hypothetical twelve-month compounding of the achieved rate. This assumes the same multiplier repeats; it is not measured annual NRR or a forecast. A zero expansion result can exceed a low target.
NRR Comparisons and Hypothetical Compounding
Use matching intervals, cohort definitions, contract sizes and revenue-recognition policies when comparing NRR. The figures below are illustrative comparison values, not verified current medians or universal performance thresholds.
| Segment | Illustrative NRR | Notes |
|---|---|---|
| SMB (ACV under $25K) | ~97% | 97% means cohort revenue declined by 3% |
| Mid-market ($25K to $100K ACV) | ~108% | 108% means cohort revenue grew by 8% |
| Enterprise (ACV over $100K) | ~118% | 118% means cohort revenue grew by 18% |
| All B2B SaaS | ~106% | 106% means cohort revenue grew by 6% |
| Public SaaS companies | 110% to 115% | Illustration only; verify a dated comparable source |
Do not compare monthly and annual NRR directly. The table below is a hypothetical constant-multiplier calculation, not measured annual cohort retention: annual scenario = (monthly NRR / 100)^12 × 100.
| Monthly NRR | Annualized NRR |
|---|---|
| 98% | 78.5% |
| 99% | 88.6% |
| 99.5% | 94.2% |
| 100% | 100% |
| 100.5% | 106.2% |
| 101% | 112.7% |
| 102% | 126.8% |
| 103% | 142.6% |
Example Problems
Example 1: solving for NRR. A SaaS company starts the month with $100,000 in MRR from existing customers. During the month those customers add $12,000 in upgrades, lose $3,000 to plan downgrades, and $5,000 in MRR cancels entirely.
NRR = ((100,000 + 12,000 – 3,000 – 5,000) / 100,000) * 100 = 104%
GRR for the same month is ((100,000 – 3,000 – 5,000) / 100,000) * 100 = 92%. The 12-point gap between the two numbers is the contribution of expansion revenue.
Example 2: solving for required expansion. A company starts with $50,000 in MRR, expects $4,000 of churn and $1,000 of downgrades, and wants to finish the month at 110% NRR.
E = 50,000 * (110/100 – 1) + 4,000 + 1,000 = 5,000 + 5,000 = $10,000
The company needs $10,000 in expansion revenue from existing customers to hit its target.
Frequently Asked Questions
Does NRR include revenue from new customers?
No. NRR isolates the customers you already had at the start of the period. Revenue from customers acquired during the period is excluded from both the numerator and the denominator. That is the point of the metric: it shows whether your business would grow or shrink if you stopped acquiring new customers entirely. If you include new sales, you are measuring total revenue growth, not retention.
What is the difference between NRR and GRR?
Gross revenue retention (GRR) uses the same inputs but ignores expansion revenue, so it can never exceed 100%. GRR tells you how much revenue you keep; NRR tells you how much you keep plus how much you grow within the base. At equal NRR, higher GRR indicates fewer starting-base losses. Neither measure alone establishes business health. This calculator requires nonoverlapping churn plus downgrade losses to be no greater than starting revenue.
What counts as a good NRR?
A rate above 100% means recurring revenue from the starting cohort grew; below 100% means it declined. A useful comparison needs a dated source with the same interval, customer segment and cohort policy. Under a hypothetical unchanged monthly multiplier, 101% compounds to about 112.7% over twelve months, but this is not measured annual retention.
