What is my net revenue retention?
Enter the recurring revenue from your existing customers at the start of a period, and what they added, cut back and cancelled during it. The calculator gives your net revenue retention (NRR) and gross revenue retention (GRR).
- Net revenue retention (NRR)
- 101%
$100,000.00 of recurring revenue at the start became $101,000.00: net revenue retention of 101% and gross revenue retention of 93%.
- Gross revenue retention (GRR)
- 93%
- Recurring revenue at the end from these customers
- $101,000.00
- Net change
- $1,000.00
Net revenue retention (NRR): 101%. $100,000.00 of recurring revenue at the start became $101,000.00: net revenue retention of 101% and gross revenue retention of 93%.
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Computes net revenue retention (NRR) and gross revenue retention (GRR) for a period from the recurring revenue of your existing customers at the start, their expansion, contraction and churned revenue.
Example with the default inputs (Recurring revenue at the start $100,000.00, Expansion $8,000.00, Contraction $2,000.00, Churned revenue $5,000.00): $100,000.00 of recurring revenue at the start became $101,000.00: net revenue retention of 101% and gross revenue retention of 93%.
Method: NRR = (start + expansion − contraction − churned revenue) ÷ start × 100; GRR = (start − contraction − churned revenue) ÷ start × 100.
- Every amount is recurring revenue from the customers you had at the start, over the same period; revenue from new customers is left out.
- Use the same unit throughout: monthly (MRR) or yearly (ARR) recurring revenue.
- Arithmetic is exact on the typed decimals; the rates show to 2 decimals and money to the cent, halves up.
Worked examples
Each example is checked against the calculator on every build.
- Recurring revenue at the start $100,000.00, Expansion $8,000.00, Contraction $2,000.00, Churned revenue $5,000.00 gives Net revenue retention (NRR) 101%, Gross revenue retention (GRR) 93%, Recurring revenue at the end from these customers $101,000.00, Net change $1,000.00.Source: Stripe, "Net revenue retention (NRR): What it is and why it matters for SaaS businesses" (NRR = (beginning recurring revenue − churned MRR − downgrade MRR + upgrade revenue) ÷ beginning recurring revenue × 100; GRR leaves out the upgrades; $100,000 − $5,000 − $2,000 + $8,000 is 101%). https://stripe.com/resources/more/net-revenue-retention: (100,000 − 5,000 − 2,000 + 8,000) ÷ 100,000 × 100 = 101
- Recurring revenue at the start $50,000.00, Expansion $0.00, Contraction $1,000.00, Churned revenue $4,000.00 gives Net revenue retention (NRR) 90%, Gross revenue retention (GRR) 90%, Net change -$5,000.00.Source: Stripe, "Net revenue retention (NRR): What it is and why it matters for SaaS businesses" (NRR = (beginning recurring revenue − churned MRR − downgrade MRR + upgrade revenue) ÷ beginning recurring revenue × 100; GRR leaves out the upgrades; $100,000 − $5,000 − $2,000 + $8,000 is 101%). https://stripe.com/resources/more/net-revenue-retention
- Recurring revenue at the start $30,000.00, Expansion $10,000.00, Contraction $0.00, Churned revenue $0.00 gives Net revenue retention (NRR) 133.333333%, Gross revenue retention (GRR) 100%.Source: Stripe, "Net revenue retention (NRR): What it is and why it matters for SaaS businesses" (NRR = (beginning recurring revenue − churned MRR − downgrade MRR + upgrade revenue) ÷ beginning recurring revenue × 100; GRR leaves out the upgrades; $100,000 − $5,000 − $2,000 + $8,000 is 101%). https://stripe.com/resources/more/net-revenue-retention
How it works
With the recurring revenue from your existing customers at the start of the period S, and during the period their expansion X (upgrades, upsells and cross-sells), contraction D (downgrades) and churned revenue C (cancellations):
- Recurring revenue at the end from these customers = S + X − D − C
- Net revenue retention NRR = (S + X − D − C) ÷ S × 100
- Gross revenue retention GRR = (S − D − C) ÷ S × 100
- Net change = X − D − C
Rules:
- S is more than $0, and each amount is at most $1 trillion. D + C more than S gives no answer, because customers cannot cut more revenue than they paid.
- GRR is from 0% to 100%, and NRR is never below GRR.
- A result too large or too small to show as a number gives no answer.
- The arithmetic is exact on the decimals you type. The rates show to 2 decimals and money to the cent, with halves rounded up (away from 0).
Assumptions
- Every amount is recurring revenue from the customers you had at the start, over one period. New customers are left out.
- Every amount uses the same unit: monthly (MRR) or yearly (ARR) recurring revenue.
Worked examples by hand
January for a software company (Stripe). S = $100,000, X = $8,000, D = $2,000, C = $5,000. End revenue = 100,000 + 8,000 − 2,000 − 5,000 = $101,000. NRR = 101,000 ÷ 100,000 × 100 = 101%. GRR = (100,000 − 2,000 − 5,000) ÷ 100,000 × 100 = 93%. Net change = $1,000.
No expansion. S = $50,000, X = 0, D = $1,000, C = $4,000. NRR = GRR = 45,000 ÷ 50,000 × 100 = 90%, and the net change is −$5,000.
Only growth. S = $30,000, X = $10,000, no contraction or churn. NRR = 40,000 ÷ 30,000 × 100 = 133.333…, shown as 133.33%, and GRR = 100%.
Other questions people ask
What is net revenue retention?
Net revenue retention (NRR) is the share of last period's recurring revenue that your existing customers still pay at the end of the period, counting their upgrades. Above 100% means existing customers grew their spending more than others cut back or left.
How do I calculate NRR?
Start with the recurring revenue from existing customers at the start of the period. Add expansion, subtract contraction and churned revenue, divide by the starting revenue, and multiply by 100. $100,000 at the start, $8,000 of upgrades, $2,000 of downgrades and $5,000 churned: (100,000 + 8,000 − 2,000 − 5,000) ÷ 100,000 × 100 = 101%.
What is gross revenue retention?
Gross revenue retention (GRR) is the same calculation without the expansion: (start − contraction − churned revenue) ÷ start × 100. It shows how much revenue you kept, so it can never be above 100%. In the example above, GRR is 93%.
Do new customers count?
No. NRR and GRR follow only the customers you had at the start of the period. Revenue from customers who joined during the period is left out, so the rates show how well you keep and grow the customers you have.
Should I use MRR or ARR?
Either, as long as every amount uses the same one. Monthly recurring revenue (MRR) gives a monthly rate; yearly recurring revenue (ARR) over a year gives a yearly rate.
What is a good net revenue retention?
Above 100% means your existing customers are a growing source of revenue even before you win new ones. Below 100% means revenue from existing customers is shrinking, so new customers must make up the loss before revenue can grow. Compare your rate with your own earlier periods measured the same way.