Net revenue retention calculator
Calculate net and gross revenue retention from expansion, downgrades and churn, see the expansion you need to reach 100%, compare customer segments and project how retention compounds your revenue over three years. Free, no sign-up, nothing leaves your browser.
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The method
How to calculate net revenue retention
What the customers you started with pay you at the end, compared with the start.
Use recurring revenue only, and only from customers who were already paying at the start of the period. New customers won during the period do not count: they belong to growth, not retention. Measure monthly, quarterly or yearly, but always say which, because a monthly NRR and a yearly NRR are very different numbers.
104%
(600,000 + 90,000 − 18,000 − 48,000) ÷ 600,000
Existing customers grew revenue by 4%.
89%
(600,000 − 18,000 − 48,000) ÷ 600,000
Kept 89% before any expansion.
$1.30M
$600,000 × 104% + $200,000 new, each year
About $320,000 more than at 90% NRR.
Two numbers
Why report NRR and GRR together
Expansion can hide churn.
NRR includes expansion, so it can be above 100% even while many customers leave, as long as the rest buy more. GRR leaves expansion out and can never be above 100%: it shows how much of your starting revenue you keep. A company with 104% NRR and 89% GRR grows its base, but still loses 11% of its starting revenue every year to downgrades and cancellations. Above 100% NRR, a business can grow even without new customers.
Segments
NRR by customer segment
One average can hide two very different businesses.
Small customers often cancel more and expand less; large customers add seats and products. In the example, small customers keep 88% of their revenue, mid-size customers 104% and large customers 125%, for 104% overall. Knowing which segment drags the total down tells you where onboarding, support or pricing needs work.
Compounding
How retention compounds
Every year starts from what you kept.
Starting from $600,000 and adding $200,000 of new customers a year, 104% NRR gives about $1.30 million after three years. With 90% NRR the same sales effort ends at about $979,000, and with 110% at about $1.46 million. The gap grows every year, which is why retention matters as much as new sales.
Spreadsheets
NRR formulas for Excel and Google Sheets
Start revenue in B2, expansion in C2, contraction in D2, churned revenue in E2.
Net revenue retention
Gross revenue retention
Monthly NRR as a yearly rate
Monthly NRR as a decimal in F2.
FAQ
Net revenue retention questions
How do you calculate net revenue retention?
Take the recurring revenue of the customers you had at the start, add their expansion, subtract their downgrades and the revenue of those who cancelled, and divide by the starting revenue. $624,000 from a $600,000 start is 104%.
What is a good NRR?
Above 100% means existing customers grow your revenue on their own; below 100% means you need new sales just to stay level. What is realistic depends on your price, market and customer size, so compare segments and your own trend over time.
What is the difference between NRR and GRR?
NRR includes expansion from existing customers; GRR does not. GRR can never be above 100%, so it shows how much revenue you lose, while NRR shows whether expansion makes up for it.
Should new customers be included?
No. NRR only follows customers who were paying at the start of the period. Revenue from new customers belongs to growth and would make retention look better than it is.
How do I turn monthly NRR into yearly NRR?
Raise it to the 12th power: 101% a month is about 112.7% a year. This assumes every month behaves the same; measuring the same customers over a full year is more accurate.
How can I raise NRR?
Reduce cancellations with faster support and better onboarding, make upgrades easy when customers grow, and watch the segment with the lowest retention first.
Does the calculator store my data?
No. Everything runs in your browser. The share link keeps your numbers in the address after the # sign, which is not sent to our server.
References
Sources
- Definitions of NRR and GRR: Stripe, "Net revenue retention (NRR) for SaaS businesses"
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