What Is Net Revenue Retention?
See NRR — the percentage of revenue retained from existing customers including expansion.
See NRR — the percentage of revenue retained from existing customers including expansion.
Net Revenue Retention is another name for NRR (Net Revenue Retention Rate). It measures the percentage of revenue you retain from your existing customer base, factoring in expansion, contraction, and churn.
Top SaaS companies target NRR above 120%, meaning their existing customer base generates 20%+ more revenue each year without any new customer acquisition. This is the single best indicator of product-market fit and value delivery.
NRR compounds: if you start with $1M in revenue and have 120% NRR, your existing base alone grows to $1.2M, then $1.44M, then $1.73M over three years — before adding any new customers.
Formula
NRR = ((Starting MRR + Expansion - Contraction - Churn) ÷ Starting MRR) × 100
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