Net Revenue Retention Defined

NRR reflects your ability to retain and expand customers. NRR calculates total revenue (including expansion) minus revenue churn (contract expirations, cancelations, or downgrades).

net revenue retention

Example:

  • Your business enters January with an MRR of $27,000 and exits January with an MRR of $35,000 (due to upsells) from the same customers at the start of the month.
  • Your business exits January with $5,000 in revenue churn due to contract expirations.
  • Your NRR for January is 111% ($30,000 ÷ $27,000).
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