What Is Net Revenue Retention (NRR)?
Net revenue retention (NRR) measures how much recurring revenue you keep and grow from existing customers over a period, including expansion and excluding new logos. NRR above 100% means your installed base grows even with zero new sales — the hallmark of a durable SaaS business.
Key takeaways
- NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR.
- Above 100% = net expansion; the existing base grows on its own.
- NRR includes upsell and cross-sell; GRR ignores expansion and caps at 100%.
How to calculate NRR
NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR
Measured only on the cohort of customers you had at the start.
Worked example
Start with €100,000 MRR from existing customers. Over the year they add €18,000 of expansion, downgrade €3,000 and churn €7,000. NRR = (100,000 + 18,000 − 3,000 − 7,000) ÷ 100,000 = 108%. The base grew 8% before a single new customer.
NRR vs GRR
| Metric | Includes expansion? | Ceiling |
|---|---|---|
| Gross Revenue Retention (GRR) | No | 100% |
| Net Revenue Retention (NRR) | Yes | No ceiling (can exceed 100%) |
Frequently asked questions
What's a good NRR?
For B2B SaaS, 100% is the break-even line; best-in-class companies run 120%+. Anything reliably above 110% signals strong product stickiness and expansion.
What's the difference between NRR and GRR?
GRR ignores expansion and can never exceed 100% — it's pure leakage. NRR adds expansion back in, so a healthy base can post NRR well above 100%.
Does NRR include new customers?
No. NRR measures only the cohort you started the period with. New-logo revenue is tracked separately so retention and acquisition don't get conflated.
Related service: Report NRR and GRR from HubSpot