Net Revenue Retention Calculator

How to Use This Calculator

1. Enter Starting MRR, Expansion MRR, Contraction MRR, and Churned MRR.
2. NRR %, ending MRR, and benchmark status appear instantly.
3. Use Annual NRR tab for ARR-level calculation.
4. Use By Segment to compare SMB, mid-market, and enterprise.
5. Switch to Professional for NRR vs GRR gap analysis and valuation multiple impact.

Formula

Example

Frequently Asked Questions

• What is Net Revenue Retention (NRR)? ▼
  NRR measures how much recurring revenue is retained from an existing customer cohort over a period, including expansion (upsells, upgrades) and minus contraction (downgrades) and churn (cancellations). NRR = (Start MRR + Expansion − Contraction − Churn) / Start MRR × 100.
• What is a good NRR for SaaS? ▼
  Best-in-class is >120% (you grow revenue from existing customers). >110% is healthy. 100–110% is OK. Below 100% means existing customers are shrinking, which is a serious concern for growth.
• What is the difference between NRR and GRR? ▼
  GRR (Gross Revenue Retention) excludes expansion — it only measures how much you retain, capped at 100%. NRR includes expansion and can exceed 100%. The gap between NRR and GRR shows the value of your expansion revenue.
• How does NRR affect valuation? ▼
  Higher NRR directly lifts revenue multiple. A company with 130% NRR is worth significantly more than one at 90% NRR because its existing customers are compounding ARR without additional acquisition cost.
• What drives expansion MRR? ▼
  Seat-based pricing (more users), usage-based pricing (more consumption), tier upgrades, add-on modules, and professional services. Companies with usage-based models often achieve NRR >130%.

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