NRR (Net Revenue Retention)
Metric
The percentage of recurring revenue retained from existing customers over a period, including expansion, contraction, and churn.
NRR (Net Revenue Retention)
NRR (Net Revenue Retention) measures how much recurring revenue you keep and grow from your existing customer base. It's the ultimate measure of customer success and product-market fit — an NRR above 100% means you're growing even without acquiring new customers.
NRR Formula
NRR = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR × 100
Example:
- Starting MRR: $100,000
- Expansion (upsells, cross-sells): $15,000
- Contraction (downgrades): $5,000
- Churn (lost customers): $8,000
Calculation:
NRR = ($100K + $15K - $5K - $8K) / $100K = 102%