Net Revenue Retention (NRR) Calculator
Existing customers grew revenue by 4.0% without any new sign-ups; expansion more than covered what was lost.
How the net revenue retention (NRR) calculation works
Start with one group of customers
Take the recurring revenue from customers you had at the start of the period, e.g. $50,000 MRR. Leave out anyone who signed up during the period.
Add expansion, take off losses
Add upgrades and add-ons from those customers, then subtract downgrades and cancellations: $50,000 + $6,000 − $1,500 − $2,500 = $52,000.
Divide by starting revenue for NRR
$52,000 ÷ $50,000 = 104.0% NRR. Over 100% means the same customers pay you more than before.
Leave out expansion for GRR
($50,000 − $1,500 − $2,500) ÷ $50,000 = 92.0% GRR. GRR can never go above 100%, so it shows how much revenue you keep before upsells.
Worked example. A software business starts the year with $50,000 of MRR from its existing customers. Over 12 months those customers add $6,000 in upgrades, downgrade by $1,500 and cancel $2,500. They now pay $52,000, so net revenue retention is $52,000 ÷ $50,000 = 104.0% and gross revenue retention is $46,000 ÷ $50,000 = 92.0%.
Net Revenue Retention FAQ
How do you calculate net revenue retention?
Take the recurring revenue from customers you had at the start of the period, add their expansion, subtract contraction and churn, and divide by the starting revenue. ($50,000 + $6,000 − $1,500 − $2,500) ÷ $50,000 = 104.0%.
What is the NRR formula?
NRR = (starting MRR + expansion − contraction − churned MRR) ÷ starting MRR × 100. Use ARR instead of MRR if you track annual revenue; the percentage is the same.
Is net dollar retention the same as net revenue retention?
Yes. Net dollar retention (NDR), net revenue retention (NRR) and net retention rate are names for the same measure. Check whether a figure is monthly or annual before comparing.
What is the difference between NRR and GRR?
NRR counts expansion revenue; GRR does not. GRR = (starting revenue − contraction − churn) ÷ starting revenue, so it tops out at 100% and shows pure revenue kept. With the example numbers NRR is 104.0% and GRR is 92.0%.
Can net revenue retention be over 100%?
Yes. When upgrades and add-ons from existing customers are larger than downgrades and cancellations, NRR is above 100% and revenue grows even with no new customers.
Do new customers count in NRR?
No. NRR follows only the customers you had at the start of the period. Revenue from new sign-ups goes into growth figures such as ARR, not retention.
What is a good net revenue retention rate?
There is no official standard. 100% is the line where existing customers stop shrinking your revenue; anything above it means they grow it. Compare your own NRR and GRR over time.
How do I turn monthly NRR into annual NRR?
Measure the same customer group over 12 months if you can. As a rough guide, the calculator also shows the monthly rate compounded 12 times; 101% a month would be about 112.7% a year if it held steady.