Advertisement

NRR FAQ

Metrics advanced FOUNDERCFO

Quick answers to the most common questions about NRR. For the full definition, formula, and benchmarks, see the NRR glossary page.

How do you calculate NRR?

NRR % = (Starting MRR + Existing Customer Upgrades - Existing Customer Downgrades - Churned MRR) / Starting MRR

Advertisement

Keep exploring 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. Read the full NRR definition for formulas, benchmarks, and common mistakes.

Advertisement

Related Concepts

Built from

  • MRR — MRR is monthly recurring revenue, the normalized monthly subscription revenue base of a Sa…
  • Expansion Revenue — Expansion Revenue is additional revenue from existing customers through upgrades, upsells,…
  • Revenue Churn — Revenue Churn measures recurring revenue lost from existing customers through cancellation…

Related terms

  • Customer Churn — Customer Churn measures the percentage of customer accounts lost over a given period.
  • Exit — Exit refers to preparing for and completing a liquidity event such as an acquisition or M&…
  • Customer Success — Customer Success is the function responsible for onboarding, retention, expansion, and cus…
  • Valuation — Valuation is the estimated enterprise or equity value of a SaaS company, often informed by…
  • Landing & Expanding — Landing & Expanding is a SaaS growth motion that starts with an initial customer win and g…
  • Outbound Sales — Outbound Sales is a sales motion where the company proactively prospects and reaches out t…