What is net revenue retention (NRR)?
Net revenue retention is the percentage of recurring revenue you keep and grow from your existing customers over a period, before adding any new customers. It rolls expansion, contraction and churn into one number. Above 100% means your installed base grows on its own; it is one of the strongest signals of durable SaaS growth and a major driver of valuation.
How this calculator works
The formula: NRR = (Start MRR + Expansion − Contraction − Churn) ÷ Start MRR GRR = (Start MRR − Contraction − Churn) ÷ Start MRR Net MRR change = Expansion − Contraction − Churn Annualized impact = Net MRR change × 12
GRR can never exceed 100% because it ignores expansion; NRR can, because expansion is added back. The gap between them is the value your customer success and expansion motion create.
What is a good NRR?
| NRR | Read |
|---|---|
| Below 90% | Leaky base; growth is capped |
| ~100% | Solid, typical for SMB SaaS |
| 110 to 130% | Best-in-class; base grows before new sales |
How to improve NRR
- Reduce churn and contraction. Onboarding, adoption and time-to-value protect the base.
- Build expansion paths. Seat growth, usage tiers and cross-sell turn NRR above 100%.
- Acquire expandable customers. ICP-fit accounts from organic search grow within your product instead of downgrading.
Frequently asked questions
How do you calculate net revenue retention?
NRR = (starting MRR + expansion − contraction − churn) ÷ starting MRR, times 100. $100K starting MRR with $15K expansion, $3K contraction and $5K churn gives 107%.
What is a good NRR for B2B SaaS?
100% means you keep what you had; best-in-class runs 110 to 130%. Around 100% is solid for SMB; below 90% signals a retention or expansion problem.
What is the difference between NRR and GRR?
GRR only subtracts contraction and churn, so it caps at 100% and shows leakage. NRR adds expansion back, so it can exceed 100% and shows net base growth.
Why does NRR matter so much?
NRR above 100% means revenue compounds even without new customers, the strongest signal of durable SaaS growth and a big valuation driver. At 120% NRR, expansion alone grows you 20% a year before a single new logo.