Net Revenue Retention Calculator
Track net revenue retention including expansion and contraction revenue.
Formula
NRR = ((Starting MRR + Expansion - Contraction - Churn) ÷ Starting MRR) × 100What is NRR?
Net Revenue Retention (NRR) measures what percentage of recurring revenue from your existing customer base you retain over a specific period, factoring in upgrades, downgrades, and cancellations.
How to calculate NRR
Start with your MRR at the beginning of the month. Add revenue from upsells and seat expansions. Subtract revenue lost to downgrades (contraction) and cancellations (churn). Divide the final sum by the starting MRR.
Example calculation
Start with $10,000 MRR. You get $1,500 in expansion, lose $200 in contraction, and lose $300 in churn. NRR = (($10,000 + $1,500 - $200 - $300) ÷ $10,000) × 100 = 110% NRR.
Why NRR matters for SaaS
An NRR over 100% is considered world-class because it means your business can grow exponentially strictly on the back of existing customers, completely independent of new sales. It proves your product becomes stickier and more valuable to users over time.
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