What Is Gross Revenue Retention (GRR)?

Definition

Gross revenue retention (GRR) is the percentage of recurring revenue you keep from existing customers over a period, before any expansion. Because it ignores upsell, GRR can never exceed 100% — making it the purest measure of how much revenue leaks through churn and downgrades.

Key takeaways

  • GRR = (Starting MRR − Churn − Contraction) ÷ Starting MRR; expansion is excluded.
  • GRR caps at 100% — it's pure retention before any growth.
  • The gap between NRR and GRR shows how much expansion is masking churn.

How to calculate GRR

GRR = (Starting MRR − Churned MRR − Contraction MRR) ÷ Starting MRR

No expansion is added back, so GRR is always ≤ 100%.

GRR vs NRR

MetricIncludes expansion?Ceiling
GRRNo100%
NRRYesNo ceiling

Frequently asked questions

What's a good GRR?

For B2B SaaS, GRR above ~90% is strong; best-in-class enterprise products can exceed 95%. Lower-ACV, SMB-focused businesses typically see lower GRR.

What's the difference between GRR and NRR?

GRR measures retention before expansion and caps at 100%; NRR adds expansion back in and can exceed 100%. GRR is the floor; NRR shows whether the base is growing.

Why can't GRR be over 100%?

Because it excludes expansion revenue. The best you can do is lose nothing — retain every euro — which is exactly 100%.

Related service: Report GRR and NRR from HubSpot

Related terms