Net Revenue Retention (NRR) is the percentage of recurring revenue retained from existing customers over a period, including expansion and after accounting for churn and contraction.
What is NRR?
NRR is arguably the single most important SaaS health metric. Above 100% means your existing customers grow your revenue even if you never sign another logo — the foundation of efficient, compounding growth.
How to calculate NRR
Worked example
Start with $200,000 MRR. Add $24,000 expansion, lose $6,000 to contraction and $8,000 to churn. NRR = ($200,000 + $24,000 − $6,000 − $8,000) ÷ $200,000 = 105%.
What's a good NRR?
100% is the baseline. Good B2B SaaS reaches 110%+; best-in-class (especially usage-based or enterprise) reaches 120–130%+.
Frequently asked questions
What does NRR above 100% mean?
Your existing customer base is generating more revenue this period than last, after churn — expansion outweighs losses. It's the signature of a durable SaaS business.
NRR vs GRR — which should I report?
Report both. NRR shows overall base growth; GRR shows raw stickiness. Sophisticated investors ask for both because NRR alone can hide high churn masked by a few big expansions.
How is NRR different from a growth rate?
NRR measures only the existing customer cohort — it excludes brand-new customers. Total growth = NRR effect + new-logo acquisition.
Related metrics
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