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Net Revenue Retention (NRR) calculator
Compute SaaS Net Revenue Retention from cohort starting MRR, expansion, contraction, and churn — the single best signal of product-market fit at scale.
Net Revenue Retention
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- Gross Revenue Retention86.8%
- Net MRR change$27,000
- Ending cohort MRR$277,000
NRR — the single best SaaS quality metric
Net Revenue Retention measures how much revenue you keep AND grow from a cohort over 12 months, ignoring all new customers acquired.
NRR = (starting MRR + expansion − contraction − churn) ÷ starting MRRNRR > 100% means existing customers grow MORE than they shrink. The math is brutal: at 130% NRR, your business doubles from EXISTING customers alone every 2.6 years before adding new sales.
The benchmarks
- >120%: best-in-class (Snowflake at peak: ~170%, Cloudflare: ~125%, Datadog: ~130%)
- 110-120%: healthy enterprise SaaS
- 100-110%: acceptable mid-market SaaS
- 90-100%: SMB SaaS often lives here
- <90%: leaky bucket; new customer acquisition has to outrun the leak
NRR vs GRR
- GRR (Gross Revenue Retention) = (starting − contraction − churn) ÷ starting. Caps at 100%. Pure churn metric.
- NRR (Net Revenue Retention) = GRR + expansion. Can exceed 100%.
A company with 95% GRR and 130% NRR has substantial expansion offsetting moderate churn. A company with 95% GRR and 100% NRR has the same churn but no expansion to offset.
Where NRR breaks down
- Long contracts hide churn: a 3-year contract that won't renew shows healthy NRR for years before the cliff.
- One whale: a single customer doubling skews NRR. Look at median customer NRR alongside dollar-weighted.
- Volume vs price expansion: usage-based pricing inflates NRR via volume; doesn't always reflect product strength.
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