Net Revenue Retention (NRR)
The percentage of recurring revenue retained from existing customers, including upgrades and downgrades.
What it means
Net Revenue Retention measures how much revenue you keep and grow from your existing customer base over a period, factoring in expansions (upgrades, add-ons), contractions (downgrades), and churn. An NRR above 100% means your existing customers are generating more revenue than you're losing - you're growing even without new customers.
Formula
NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR × 100%
Why it matters
NRR above 100% is the holy grail of SaaS. It means your revenue grows even if you stop acquiring new customers. Top SaaS companies like Snowflake and Twilio have NRR above 120%. For early-stage founders, NRR reveals whether your product delivers increasing value over time.
What is net revenue retention?
Net Revenue Retention (NRR) measures the percentage of revenue retained from existing customers over a period, including upgrades, downgrades, and churn. Above 100% means you're growing from your existing base.
What is a good NRR for SaaS?
Above 100% is the minimum target. 110-120% is strong for SMB SaaS, and 120%+ is excellent and common among enterprise SaaS companies.
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