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08 / Tools / Retention

Net Revenue Retention

Expansion, contraction, and churn into one retention metric.

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Inputs

Results

  • Net Revenue Retention

    104.0%

  • Ending cohort MRR

    $104,000

What is NRR?

Net Revenue Retention (NRR), also called Net Dollar Retention (NDR), measures how recurring revenue from an existing customer cohort changes after expansion, contraction, and churn — without counting new logos.

Why is NRR Important?

  • Efficient growth

    NRR above 100% means the base grows without new acquisition.

  • Valuation signal

    Strong NRR is heavily weighted in SaaS quality assessments.

  • Expansion proof

    Shows whether upsell and seat growth are real.

  • Churn context

    Separates gross loss from net outcome after expansion.

  • CS priorities

    Highlights contraction and churn to attack first.

How is NRR Calculated?

Formula

NRR = (Start MRR + Expansion − Contraction − Churned) ÷ Start MRR × 100

Start with cohort MRR, add expansion, subtract contraction and churned MRR, then divide by starting MRR.

Factors Affecting NRR

  1. 01

    Expansion motion

    Usage-based billing, seats, and add-ons lift NRR.

  2. 02

    Contraction

    Downgrades and seat loss pull NRR down.

  3. 03

    Logo churn

    Lost accounts remove MRR from the cohort.

  4. 04

    Pricing power

    Successful price increases can raise NRR.

  5. 05

    Product breadth

    Multi-product suites enable cross-sell.

  6. 06

    Customer success

    Proactive adoption reduces churn and contraction.

NRR vs. Gross Retention

NRR

  • Includes expansion.
  • Can exceed 100%.
  • Best for overall base health.

Gross retention

  • Ignores expansion.
  • Caps at 100%.
  • Best for seeing raw churn/contraction.

What is a NRR Calculator?

An NRR calculator combines starting MRR with expansion, contraction, and churn to show net retention for a cohort.

Benefits of Using a NRR Calculator

  • Board-ready output

    Produce NRR without rebuilding finance sheets.

  • Scenario planning

    Test how expansion or churn moves the metric.

  • CS focus

    Quantify contraction vs logo loss.

  • Growth quality

    Show how much growth comes from the existing base.

  • Consistency

    Standardize cohort math across teams.

How to Use a NRR Calculator

  1. Step 1

    Enter starting MRR

    Use the cohort’s recurring revenue at period start.

  2. Step 2

    Enter expansion

    Add upsell, cross-sell, and seat growth MRR.

  3. Step 3

    Enter contraction & churn

    Subtract downgrades and lost MRR.

  4. Step 4

    Read NRR

    Review net retention % and ending cohort MRR.

What Is a Good NRR?

Elite B2B SaaS often targets 110–130%+ NRR. Above 100% is already a strong signal that expansion outpaces losses. Below 100% means the installed base is shrinking and new logo growth must work harder.

Who's it for?

Founders & operators

Get a fast read on unit economics or channel efficiency without waiting on a spreadsheet rebuild.

Digital Marketers

Use this calculator to benchmark performance, allocate budget, and brief stakeholders with a clear, shared metric.

Agencies & growth teams

Standardize reporting across clients and campaigns, and turn calculations into optimization recommendations.

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