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Net Revenue Retention (NRR) Calculator
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Net revenue retention (NRR) = (starting ARR + expansion − contraction − churn) ÷ starting ARR, expressed as a percentage. A company starting the period with $1,000,000 in ARR that gains $150,000 from upsells, loses $50,000 to downgrades, and loses $100,000 to cancellations has NRR of (1,000,000 + 150,000 − 50,000 − 100,000) / 1,000,000 = 100%. NRR above 100% means expansion revenue from existing customers outpaces contraction and churn, so revenue grows even with zero new customers. This calculator returns your NRR instantly from four inputs.
Your net revenue retention
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How net revenue retention is calculated
NRR = (starting ARR + expansion − contraction − churn) ÷ starting ARR × 100. It measures how much recurring revenue you keep and grow from your existing customer base over a period, excluding any revenue from new customers acquired during that period.
A company starting the quarter with $1,000,000 in ARR that gains $150,000 from upsells and expansions, loses $50,000 to downgrades, and loses $100,000 to cancellations has NRR of (1,000,000 + 150,000 − 50,000 − 100,000) / 1,000,000 = 100% — the existing customer base neither grew nor shrank net of expansion and losses.
What counts as a good NRR
Top-quartile SaaS companies, especially those selling into enterprise accounts with strong upsell and seat-expansion motions, post NRR of 120% or higher — meaning existing customers alone grow revenue 20%+ a year with zero new logos. 100-110% is solid and typical for healthy mid-market SaaS. Below 100% means contraction and churn are outpacing expansion, so the business must rely entirely on new customer acquisition just to stay flat.
NRR is one of the most-watched metrics by SaaS investors because it isolates the health of the existing customer relationship from the cost and unpredictability of new customer acquisition — a business with NRR above 100% has a growth engine that compounds even before a single new deal closes.
FAQ
Questions
What is a good net revenue retention rate?
120% or higher is considered excellent and is common among top-performing enterprise SaaS companies with strong expansion motions. 100-110% is healthy for typical SaaS businesses. Below 100% means the existing customer base is shrinking net of expansion, which puts pressure on new customer acquisition to sustain growth.
What's the difference between net revenue retention and gross revenue retention?
Net revenue retention (NRR) includes expansion revenue from upsells and cross-sells, so it can exceed 100%. Gross revenue retention (GRR) excludes expansion and only measures what's lost to contraction and churn, so it's capped at 100%. NRR shows overall account growth potential; GRR shows how sticky the base revenue is on its own.
Does net revenue retention include new customers?
No. NRR is calculated only from the cohort of customers you had at the start of the period. Revenue from newly acquired customers during the period is excluded, which is what makes NRR a pure measure of how well you retain and grow your existing base.
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