# What is my net revenue retention?

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.

- Page: https://www.acalculator.org/finance/nrr-calculator
- JSON spec: https://www.acalculator.org/finance/nrr-calculator.json
- Version: 96e06dba9ede

## Default answer

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%.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| start | Recurring revenue at the start | Monthly or yearly recurring revenue (MRR or ARR) from your existing customers at the start of the period. |
| expansion | Expansion | Recurring revenue these customers added during the period: upgrades, upsells and cross-sells. |
| contraction | Contraction | Recurring revenue lost when these customers moved to cheaper plans (downgrades). |
| churned | Churned revenue | Recurring revenue lost from customers who cancelled. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| nrr | Net revenue retention (NRR) | (Start + expansion − contraction − churned revenue) ÷ start × 100. |
| grr | Gross revenue retention (GRR) | (Start − contraction − churned revenue) ÷ start × 100. |
| endRevenue | Recurring revenue at the end from these customers | Start + expansion − contraction − churned revenue. |
| netChange | Net change | Expansion − contraction − churned revenue. |

## Method

NRR = (start + expansion − contraction − churned revenue) ÷ start × 100; GRR = (start − contraction − churned revenue) ÷ start × 100.

## Assumptions

- 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

1. start = $100,000.00, expansion = $8,000.00, contraction = $2,000.00, churned = $5,000.00 gives nrr = 101%, grr = 93%, endRevenue = $101,000.00, netChange = $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.
2. start = $50,000.00, expansion = $0.00, contraction = $1,000.00, churned = $4,000.00 gives nrr = 90%, grr = 90%, netChange = -$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.
3. start = $30,000.00, expansion = $10,000.00, contraction = $0.00, churned = $0.00 gives nrr = 133.333333%, 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.

## FAQ

### 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.

## Sources

- Stripe, "Net revenue retention (NRR): What it is and why it matters for SaaS businesses": NRR = (beginning recurring revenue − MRR lost from churned customers − MRR lost from downgrades + revenue from upgrades) ÷ beginning recurring revenue × 100, GRR the same without upgrades; $100,000 − $5,000 − $2,000 + $8,000 gives 101%. https://stripe.com/resources/more/net-revenue-retention (retrieved 2026-10-18)