Net Revenue Retention (NRR) Calculator
Calculate Net Revenue Retention to measure how much revenue you retain and grow from existing customers. NRR above 100% means you’re growing without acquiring a single new customer.
📊 SaaS💼 NRR = (Starting MRR + Expansion − Contraction − Churn) / Starting MRR × 100
Starting MRR from cohort ($)
Expansion MRR (upsells/cross-sells) ($)
Contraction MRR (downgrades) ($)
Churned MRR (cancellations) ($)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Net Revenue Retention (NRR) Calculator | NRR = (Starting MRR + Expansion − Contraction − Churn) / Starting MRR × 100 | % |
Step-by-Step Examples
Example 1
Excellent NRR
$100k starting, $15k expansion, $3k contraction, $5k churn.
- Ending: $100k+$15k-$3k-$5k = $107k
- NRR = 107% — growing without new customers
✓ 107% NRR — negative net churn
Example 2
Good NRR
$100k, $8k expansion, $4k contraction, $10k churn.
- Ending: $94k
- NRR = 94% — losing ground but expansion softens impact
✓ 94% NRR — below 100%, needs improvement
Example 3
Poor NRR
$100k, $3k expansion, $2k contraction, $18k churn.
- Ending: $83k
- NRR = 83% — serious retention problem, growth is masking a leaky bucket
✓ 83% NRR — critical retention issue
Real-World Applications
SaaS Founders
NRR is the single most predictive metric of long-term SaaS success.
Investors
Top-tier VCs require 110%+ NRR for growth-stage investment.
Customer Success
NRR measures CS team effectiveness at retention and expansion.
M&A
Higher NRR commands significantly higher revenue multiples in SaaS acquisitions.
Common Mistakes to Avoid
⚠️
Confusing NRR with gross revenue retention (GRR)
GRR measures only churn (no expansion), so GRR ≤ 100%. NRR includes expansion, so it can exceed 100%. Both metrics matter.
⚠️
Measuring NRR monthly instead of on a cohort basis
True NRR tracks the same cohort of customers over time. Monthly NRR mixing cohorts can obscure true retention patterns.
⚠️
Ignoring NRR while chasing new logo growth
Growing new MRR while NRR is 80% means you’re filling a leaky bucket. Fix retention before scaling acquisition.
Frequently Asked Questions
What is good NRR for SaaS? ▾
Public SaaS benchmarks: 100–110% good, 110–120% excellent, 120%+ best-in-class (Snowflake, Twilio). Under 100% means existing revenue is shrinking.
What is the difference between NRR and GRR? ▾
GRR = Gross Revenue Retention = (Start + Expansion - Contraction - Churn) / Start but capped at 100%. NRR includes expansion, so can exceed 100%.
What drives NRR above 100%? ▾
Strong customer success programs, upsell motions, usage-based pricing (customers naturally grow into more), multi-product expansion, and low churn.
How does NRR affect SaaS valuation? ▾
Every 10% of NRR above 100% typically adds 1–2x to SaaS revenue multiples. A 120% NRR business is worth significantly more per dollar of ARR than a 100% NRR business.
What is NDR (Net Dollar Retention)? ▾
NDR and NRR are the same metric with different naming conventions. NDR is used by some investors and platforms (Bessemer, SaaStr); NRR is also common.