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metrics

NRR (Net Revenue Retention)

Revenue retained from existing customers including expansions and downgrades.

NRR (Net Revenue Retention) measures how much revenue you retain from your existing customer base over time, including expansions, downgrades, and churn. A NRR above 100% means your existing customers generate more revenue than the previous period.

Formula

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

Tips

  • NRR > 100% is the holy grail of SaaS
  • Best SaaS companies have NRR > 120%
  • Focus on expansion revenue to boost NRR

Related Terms

MRRCHURN RATEEXPANSION REVENUERETENTION RATE

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