Net revenue retention (NRR)

How revenue from existing customers changes over a year, including upgrades and churn.

Last reviewed 12 September 2026

Above 100% means your existing base grows on its own — expansion outweighs cancellations, and new sales become pure upside.

NRR is the clearest signal of whether customers get more value over time.

Formula

NRR = (Starting MRR + expansion − contraction − churn) ÷ Starting MRR × 100

Frequently asked

What is net revenue retention (nrr)?+

How revenue from existing customers changes over a year, including upgrades and churn. Above 100% means your existing base grows on its own — expansion outweighs cancellations, and new sales become pure upside. NRR is the clearest signal of whether customers get more value over time.

How do you calculate net revenue retention (nrr)?+

NRR = (Starting MRR + expansion − contraction − churn) ÷ Starting MRR × 100

Why does net revenue retention (nrr) matter for founders?+

NRR is the clearest signal of whether customers get more value over time.

Related terms

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