NRR
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.
Also known as: NDR, Net Dollar Retention, Net Revenue Retention, Net Revenue Retention %
NRR 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. |
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How to Calculate NRR
Worked example
- Starting MRR
- $100,000
- Upgrades (expansion MRR)
- $15,000
- Downgrades (contraction MRR)
- $5,000
- Churned MRR
- $3,000
- → Net Revenue Retention
- 107%
NRR Calculator
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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NRR Benchmarks
| Segment | Level | Benchmark |
|---|---|---|
| general | best | 120% |
| general | good | 100% |
| general | great | 110% |
NRR FAQ
How do you calculate NRR?
NRR % = (Starting MRR + Existing Customer Upgrades - Existing Customer Downgrades - Churned MRR) / Starting MRR
More questions? See the full NRR FAQ.