Net Revenue Retention (NRR) Calculator

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Illustrative calculation; verify inputs and assumptions before relying on it.

Net Revenue Retention—

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Net Revenue Retention % = (Starting MRR + Existing Customer Upgrades - Existing Customer Downgrades - Existing Customer Churn) / Starting MRR
Variable Meaning
Starting MRR Monthly recurring revenue at the start of the period.
Existing Customer Upgrades Expansion revenue from existing customers.
Existing Customer Downgrades Contraction revenue from existing customers.
Existing Customer Churn Recurring revenue lost from existing customers.

Worked example

Starting MRR
$100,000
Upgrades (expansion MRR)
$15,000
Downgrades (contraction MRR)
$5,000
Churned MRR
$3,000
→ Net Revenue Retention
107%

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What NRR measures

Published by 4NLab · Updated · Our methods

NRR is net revenue retention, the percentage of recurring revenue retained from existing customers over a period, including expansion, downgrades, and churn. NRR above 100% means expansion outpaces losses.

Prepare your inputs

  1. Choose a starting date and freeze the list of existing paying accounts. Record their opening recurring revenue.
  2. Measure expansion, contraction, and churn for those same accounts during the reporting window. Exclude reactivated customers and their revenue; track reactivation MRR separately. Document currency and price changes.
  3. Add expansion to opening revenue, subtract contraction and churn, then divide by opening revenue. Reconcile these movements to the subscription ledger without adding reactivation MRR to the NRR cohort.

Formula

Net Revenue Retention % = (Starting MRR + Existing Customer Upgrades - Existing Customer Downgrades - Existing Customer Churn) / Starting MRR
Variable Meaning
Starting MRR Monthly recurring revenue at the start of the period.
Existing Customer Upgrades Expansion revenue from existing customers.
Existing Customer Downgrades Contraction revenue from existing customers.
Existing Customer Churn Recurring revenue lost from existing customers.

Check the sample calculation

Worked example

Starting MRR
$100,000
Upgrades (expansion MRR)
$15,000
Downgrades (contraction MRR)
$5,000
Churned MRR
$3,000
→ Net Revenue Retention
107%

Before using the result

  • This calculator models expansion, contraction, and churn from the opening cohort. Do not enter reactivated-customer revenue as expansion or retained revenue; report it separately as reactivation MRR in the company-wide revenue bridge.
  • A monthly 107% result cannot be compared directly with an annual 107% result.
  • Currency translation or acquired customer books can change reported revenue without reflecting product retention. Isolate these effects when material.

A dash means the result is undefined for the inputs, such as division by zero. Review the assumptions and input errors before interpreting it.

Read the NRR guide for a business scenario, interpretation, and frequently asked questions.

Check how your team defines NRR before relying on the result.

Sources and methodology

The references below explain the underlying methods. Our worked scenarios use hypothetical figures; they are not company results or current market benchmarks.

Found an error or a definition that differs from your reporting? Send a correction with the page URL and the method you use.