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 inverts the NRR formula to solve for the expansion revenue required to reach a target retention rate T:
E = 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. In every mode, when the period is set to monthly, the calculator also annualizes the result by raising the monthly rate to the twelfth power, which shows what the rate compounds to over a full year.
NRR Benchmarks and Annualized Equivalents
NRR only means something when compared against companies selling to similar customers. Median retention rises with contract size because larger accounts churn less and have more room to expand.
| Segment | Median NRR | Notes |
|---|---|---|
| SMB (ACV under $25K) | ~97% | Below 100% is normal here; holding 100%+ is strong |
| Mid-market ($25K to $100K ACV) | ~108% | Expansion typically outweighs churn |
| Enterprise (ACV over $100K) | ~118% | Seat growth and upsells drive high retention |
| All B2B SaaS | ~106% | Blended median across segments |
| Public SaaS companies | 110% to 115% | Best performers average 120%+ |
A common mistake is comparing a monthly NRR against benchmarks that are quoted annually. Because retention compounds, a monthly rate that looks close to 100% can translate into a very different annual figure. The table below converts monthly NRR into its annualized equivalent.
| 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. A company with 105% NRR and 95% GRR is healthier than one with 105% NRR and 80% GRR, because the second company is papering over heavy churn with aggressive upsells. Investors typically want to see both numbers together.
What counts as a good NRR?
It depends on who you sell to. Around 97% is the median for SMB-focused products, roughly 108% for mid-market, and about 118% for enterprise. Anything above 100% means your existing customer base is a growth engine on its own, and sustained rates above 120% put you in the top tier of SaaS companies. Also check whether a benchmark is quoted monthly or annually before comparing, since a 101% monthly NRR compounds to about 112.7% annually.
