Net Revenue Retention (NRR) measures how much recurring revenue you keep and grow from existing customers over a period — after expansion, contraction and churn — usually shown as a percentage.
NRR tracks what happens to the revenue of a cohort of existing customers over time, ignoring new customers. It captures upgrades and cross-sells (expansion), downgrades (contraction) and churn in one number. Above 100% means your existing base grew on its own; below means it shrank.
NRR = (starting recurring revenue + expansion − contraction − churn) ÷ starting recurring revenue, for the same cohort over a period. A result of 110% means that even with no new customers, revenue from the existing base grew 10%.
NRR is one of the clearest signals of product-market fit and business health, especially for subscription and SaaS models. Above 100% means growth compounds from your base — a powerful, efficient engine — while low NRR means you’re refilling a leaky bucket. It’s driven by retention, expansion and reducing churn.
NRR measures how much recurring revenue you keep and grow from existing customers over a period — after expansion, contraction and churn — shown as a percentage. Above 100% means the existing base grew on its own; below means it shrank.
NRR = (starting recurring revenue + expansion - contraction - churn) / starting recurring revenue, for the same cohort over a period. For example, 110% means revenue from the existing base grew 10% even with no new customers.
It's one of the clearest signals of product-market fit and business health, especially for SaaS. Above 100% means growth compounds from your existing base — efficient and powerful — while low NRR means acquisition is just refilling a leaky bucket.
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