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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