Net Revenue Retention Calculator
Net and gross revenue retention for a group of existing customers from their starting MRR, expansion, contraction and churn over a month, quarter or year.
Result…
How it's calculated
NRR = (start + expansion − contraction − churn) ÷ start × 100 GRR = (start − contraction − churn) ÷ start × 100 Over a year from a k-month period = (rate)^(12 ÷ k)
Net revenue retention (NRR) follows the customers you had at the start of a period and asks how much recurring revenue they produce at the end, counting upgrades as well as downgrades and cancellations. Gross revenue retention (GRR) leaves expansion out, so it can never pass 100%: it shows how well you hold on to revenue, while NRR shows whether existing customers grow on balance. Revenue from customers who joined during the period is excluded from both. Companies often report NRR over 12 months; a monthly figure repeated for a year compounds, which the calculator shows. Definitions vary, for example on how re-activated customers are counted, so compare figures calculated the same way.
Your numbers, step by step
About the Net Revenue Retention calculator
This net revenue retention calculator follows the customers you had at the start of a period and shows how much of their recurring revenue you kept. Enter their starting MRR, the expansion from upgrades and add-ons, the contraction from downgrades and the MRR lost to cancellations. Net revenue retention (NRR) counts all four, so it can pass 100% when upgrades outweigh losses. Gross revenue retention (GRR) leaves expansion out, so it tops out at 100% and shows purely how well you hold on to revenue. Pick a month or a quarter and the calculator also shows what the rate compounds to over a year. Subscription businesses report both figures to investors and boards, and the step-by-step working makes it easy to check each one.
How to use it
- Pick the “Period” the figures cover: month, quarter or year.
- Enter the “MRR at the start of the period” from existing customers only.
- Enter the “Expansion MRR”, “Contraction MRR” and “Churned MRR” from those same customers.
- Compare NRR with GRR: the gap between them is the expansion.
Worked example
Existing customers start the year at 100,000 of MRR. They add 15,000 through upgrades, cut 4,000 through downgrades and 6,000 leaves with cancellations. Ending MRR is 100,000 + 15,000 − 4,000 − 6,000 = 105,000, so NRR = 105,000 ÷ 100,000 = 105% and net revenue churn is −5%. GRR = (100,000 − 4,000 − 6,000) ÷ 100,000 = 90%, and expansion alone was 15% of the starting MRR.
Updated
Questions people ask
How do you calculate net revenue retention?
Take the starting MRR from existing customers, add expansion, subtract contraction and churn, then divide by the starting MRR and multiply by 100.
What is the difference between NRR and GRR?
NRR includes expansion from upgrades, GRR does not. GRR can never be above 100%, so it shows how much revenue you hold on to, while NRR shows whether existing customers grow on balance.
What does NRR above 100% mean?
Your existing customers produce more recurring revenue at the end of the period than at the start, even before counting new customers. Upgrades and add-ons have more than covered downgrades and cancellations.
Should revenue from new customers be included?
No. Both rates follow only the customers you had at the start of the period. Track new business separately, for example with the MRR calculator.
Can I compare monthly and annual NRR?
Only after converting. A monthly NRR repeated for 12 months compounds, so 98% a month is about 78.5% over a year. Companies also differ in how they treat reactivated accounts, so check the definition before comparing.