Account Retention vs NRR
What is the difference between Account Retention and NRR? Side-by-side definitions, formulas, and benchmarks for two of the most-watched SaaS metrics.
Definitions
What is Account Retention?
Account Retention measures the share of customer accounts that remain active over a period, separate from how much revenue those accounts expand or contract.
Full Account Retention definition →
What is NRR?
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.
Account Retention vs NRR at a Glance
| Account Retention | NRR | |
|---|---|---|
| Category | Metrics | Metrics |
| Formula | — | Net Revenue Retention % = (Starting MRR + Existing Customer Upgrades - Existing Customer Downgrades - Existing Customer Churn) / Starting MRR |
| Benchmarks | — | best: 120%; good: 100%; great: 110% |
| Calculator | — | NRR calculator |
When Each Matters
Account Retention and NRR answer different questions. Account Retention measures the share of customer accounts that remain active over a period, separate from how much revenue those accounts expand or contract. 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. In practice, healthy SaaS operators watch both, because each one catches failure modes the other misses.