Net Revenue Retention Benchmarks for SaaS

Net Revenue Retention is the best predictor of long-term SaaS success. If your NRR is above 100%, you grow even without acquiring new customers.

NRR by Segment

Enterprise SaaS typically achieves higher NRR through expansion revenue and longer contracts. SMB SaaS: 85-100% NRR · Mid-market SaaS: 100-115% NRR · Enterprise SaaS: 110-140% NRR · Usage-based SaaS: 110-150% NRR

NRR Rating Scale

How investors and operators evaluate NRR performance. World-class: > 130% NRR · Excellent: 120-130% NRR · Good: 110-120% NRR · Acceptable: 100-110% NRR · Concerning: 90-100% NRR · Critical: < 90% NRR

NRR Components

Break down NRR into its components to identify improvement areas. Gross retention (target): > 85% (> 90% for enterprise) · Expansion rate (good): 10-30% of starting revenue · Contraction rate (target): < 5% of starting revenue · Logo churn (target): < 5% annually (enterprise)

Related

• All benchmarks
• Glossary: Churn Rate
• Glossary: MRR
• Revenue Leak Scanner