What is Net Revenue Retention (NRR)?

Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing customers over a period, including expansion revenue (upsells, cross-sells) and accounting for churn and contractions. An NRR above 100% means you're growing revenue from existing customers even without acquiring new ones.

How is NRR calculated?

NRR = ((Starting MRR + Expansion MRR - Churned MRR - Contraction MRR) / Starting MRR) × 100. For example, if you start with $100K MRR, gain $20K in expansions, lose $10K to churn, and $5K to downgrades, your NRR is (($100K + $20K - $10K - $5K) / $100K) × 100 = 105%.

What is a good NRR for SaaS companies?

Best-in-class SaaS companies achieve NRR of 120%+. For enterprise SaaS, 110-130% is excellent. SMB-focused SaaS typically sees 90-110%. Seed-stage companies should target 100%+, while Series B+ companies should aim for 110%+ to attract top-tier investors.

What's the difference between NRR and GRR?

GRR (Gross Revenue Retention) only measures revenue lost to churn and contractions, excluding expansion revenue. GRR is always ≤100% and shows your "floor" — how well you retain existing revenue. NRR includes expansion and can exceed 100%, showing your full customer revenue potential. Investors look at both: GRR for retention health, NRR for growth efficiency.

Why does NRR matter for fundraising?

NRR is one of the most scrutinized metrics by SaaS investors because it indicates capital efficiency. High NRR (110%+) means you can grow revenue without proportionally increasing customer acquisition spend. Companies with 120%+ NRR often command premium valuations (10-15x ARR vs 5-8x for lower NRR companies).

How can I improve my NRR?

Focus on three levers: 1) Reduce churn through better onboarding, customer success, and product stickiness, 2) Minimize contractions by demonstrating ongoing value and catching at-risk accounts early, 3) Increase expansion through usage-based pricing, upsell paths, and cross-sell opportunities.

NRR Calculator

Calculate your Net Revenue Retention (NRR) instantly. Free SaaS NRR calculator with benchmarks by stage, NRR vs GRR comparison, and AI-powered insights.

Enter Your Values

Starting MRR*

Your Monthly Recurring Revenue at the beginning of the period

Expansion MRR*

Additional revenue from existing customers (upsells, cross-sells, upgrades)

Churned MRR*

Revenue lost from customers who cancelled completely

Contraction MRR

Revenue lost from customers who downgraded (but didn't cancel)

Formula

NRR = ((Starting MRR + Expansion - Churned - Contraction) / Starting MRR) × 100

Net Revenue Retention shows the percentage of recurring revenue retained from your existing customer base, factoring in expansions, churn, and contractions. An NRR above 100% means your existing customers are generating more revenue over time.

Net Revenue Retention (NRR)104.0%

104.0% NRR — Good! You're retaining and growing existing customer revenue.

Gross Revenue Retention (GRR)89.0%

Ending MRR (Existing Customers)$104,000

Net MRR Change$4,000

Expansion Rate15.0%

Churn Rate8.0%

Contraction Rate3.0%

Annualized NRR160.1%

Time to 2x Revenue18 months

Benchmark StatusAt median (SMB SaaS)

How Does Your NRR Compare?

Needs ImprovementBelow 90% — losing significant customer revenue

< 89.99%

Moderate90-100% — typical for early-stage SMB SaaS

90% – 99.99%

Good100-110% — healthy growth from existing customers

100% – 109.99%

Excellent110-120% — enterprise-level retention

110% – 119.99%

Best-in-Class120%+ — top-tier SaaS, attractive to investors

> 120%

Source: OpenView SaaS Benchmarks 2024, KeyBanc SaaS Survey

How to Calculate Net Revenue Retention (NRR)

Enter your Starting MRR — your Monthly Recurring Revenue at the beginning of the period
Enter your Expansion MRR — additional revenue from upsells, cross-sells, and upgrades
Enter your Churned MRR — revenue lost from customers who cancelled
Optionally enter Contraction MRR — revenue lost from downgrades
View your NRR, GRR, and other key retention metrics instantly
Compare against SaaS industry benchmarks by company stage
Chat with our AI SaaS Analyst for personalized improvement strategies

SaaS Net Revenue Retention Benchmarks

120%+

Best-in-Class SaaS

110-115%

Enterprise SaaS Median

90-100%

SMB SaaS Median

110%+

Series B+ Target

100%+

Seed/Series A Target

112%

Public SaaS Average