Net Revenue Retention Calculator
Calculate net revenue retention (NRR) and gross revenue retention (GRR) from your starting MRR, expansion, contraction, and churn, plus an annual estimate.
Frequently Asked Questions about the Net Revenue Retention Calculator
How do you calculate net revenue retention (NRR)?
NRR equals (starting MRR plus expansion minus contraction minus churned MRR) divided by starting MRR, expressed as a percent. Expansion is upgrades, cross-sell, and usage growth from existing customers. Contraction is downgrades from customers you kept, and churned is revenue lost from customers who fully canceled. New-customer revenue is left out, so NRR measures how the existing base alone changed over the period.
What is the difference between NRR and gross revenue retention (GRR)?
GRR uses the same starting base but excludes expansion: it is (starting MRR minus contraction minus churned MRR) divided by starting MRR. Because expansion is dropped, GRR can never exceed 100%, and it is always at or below NRR for the same inputs. NRR shows your net growth from existing customers, while GRR shows how much revenue you held onto before any upsell.
What is a good net revenue retention rate?
Best-in-class SaaS companies report NRR above 100%, meaning expansion outran contraction and churn (often called net negative churn). Many strong businesses land in the 100% to 120% range, and enterprise products can run higher. NRR below 100% means the existing base is shrinking, which puts more pressure on new sales to keep growing. Compare against peers at your stage and price point rather than a single universal target.
Should I use monthly (MRR) or annual (ARR) figures?
Use whichever period matches how you track recurring revenue, as long as all four inputs cover the same period and the same starting cohort. If you enter monthly numbers, this calculator also shows an annualized estimate by compounding the monthly rate over 12 months. That annual figure assumes a constant monthly rate, so treat it as a rough projection since real retention varies month to month.
Why can't contraction and churn add up to more than my starting revenue?
Contraction and churn both reduce revenue you already had, so together they cannot remove more than the cohort started with. The most you can lose is the entire starting base, which gives a GRR of 0%. If your combined contraction and churn exceed the starting figure, one of the inputs is likely in the wrong bucket, so the calculator returns no result instead of a misleading rate.
Is this calculator financial advice?
No. It is an educational estimate based on the figures you enter and the standard NRR and GRR formulas, not financial, accounting, or investment advice. Definitions of expansion, contraction, and churn can vary between companies and reporting standards. For decisions that depend on these metrics, confirm your numbers with your own finance team or a qualified professional.
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