Net Revenue Retention (NRR)
Net Revenue Retention (NRR) is The percentage of recurring revenue retained from existing customers over a period, including expansion (upsells, cross-sells) and contraction (downgrades, churn).
Net Revenue Retention (NRR) measures whether your existing customer base is growing or shrinking, independent of new sales. An NRR above 100% means your customers are spending more over time. Below 100% means you're leaking revenue faster than you're expanding.
The Formula
NRR = (Starting Revenue + Expansion - Contraction - Churn) / Starting Revenue × 100
Benchmarks
- Best-in-class SaaS: 120-140% (Snowflake, Datadog)
- Strong: 110-120%
- Healthy: 100-110%
- Concerning: Below 100% (you need new sales just to stay flat)
NRR is the metric that boards, investors, and analysts watch most closely because it reflects product-market fit and customer value delivery simultaneously. RevOps owns the measurement; CS and Product own the improvement. See all 25 RevOps KPIs for context.
Frequently Asked Questions
What's the difference between NRR and GRR?
Gross Revenue Retention (GRR) only measures losses (churn + contraction), always ≤100%. NRR includes expansion revenue, so it can exceed 100%. GRR shows how well you retain; NRR shows whether your base grows.
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