Net Revenue Retention Calculator: NRR, NDR and GRR
Net revenue retention (NRR) is the share of recurring revenue you keep from existing customers after upgrades, downgrades and cancellations: (start + expansion − contraction − churn) ÷ start × 100. Start a year with 1,000,000 of ARR, add 150,000, lose 30,000 to downgrades and 70,000 to churn: NRR is 105% and gross revenue retention 90%.
Enter the recurring revenue (MRR or ARR) of your existing customers at the start of a month, quarter or year and how it changed. You get net and gross revenue retention, net and gross revenue churn and the compounded annual rate, in any currency. Add revenue from new customers to see total growth.
Net revenue retention formulas
| Figure | Formula |
|---|---|
| Net revenue retention (NRR, NDR) | (S + E − C − L) ÷ S × 100 |
| Gross revenue retention (GRR) | (S − C − L) ÷ S × 100 |
| Net revenue churn | 100% − NRR |
| Gross revenue churn | (C + L) ÷ S × 100 |
| Annual NRR from monthly | (monthly NRR)12 |
S: recurring revenue of existing customers at the start. E: expansion from upgrades and cross-sells. C: contraction from downgrades. L: revenue lost to cancellations. Revenue from new customers is left out.
Example
A software company starts the year with 1,000,000.00 of annual recurring revenue. Over the year its existing customers add 150,000.00 in upgrades, downgrade by 30,000.00 and cancel 70,000.00. They now pay 1,050,000.00, so NRR is 1,050,000 ÷ 1,000,000 = 105% and GRR is (1,000,000 − 30,000 − 70,000) ÷ 1,000,000 = 90%.
It also won 250,000.00 from new customers, which ends the year at 1,300,000.00 of ARR, 30% growth. NRR stays at 105%: new sales do not count. On a monthly basis the Stripe example works the same way: (100,000 − 5,000 − 2,000 + 8,000) ÷ 100,000 = 101%.
Monthly and annual NRR
| Monthly NRR | Annual NRR |
|---|---|
| 97% | 69.38% |
| 98% | 78.47% |
| 99% | 88.64% |
| 100% | 100% |
| 101% | 112.68% |
| 102% | 126.82% |
Frequently asked questions
What is the net revenue retention formula?
NRR = (recurring revenue at the start + expansion − contraction − churned revenue) ÷ recurring revenue at the start × 100. Count only customers you already had at the start of the period. With 100,000 of MRR, 8,000 of upgrades, 2,000 of downgrades and 5,000 of cancellations, NRR is 101,000 ÷ 100,000 = 101%.
What is the difference between NRR and GRR?
Gross revenue retention leaves out expansion: GRR = (start − contraction − churn) ÷ start. It shows only what you lost, so it can never be above 100%. NRR adds upgrades and cross-sells back and can be above 100%. A high NRR with a low GRR means upsells hide a churn problem.
Is net dollar retention the same as net revenue retention?
Yes. Net dollar retention (NDR) and net revenue retention (NRR) are two names for the same metric: revenue today from a group of existing customers divided by their revenue at the start. Gross dollar retention (GDR) is the same as gross revenue retention.
What is a good net revenue retention rate?
Above 100% means existing customers grow your revenue even with no new sales, which most B2B software companies aim for. Between 80% and 100% you keep most revenue but upsells do not cover losses. Below 80% usually points to a retention problem. Compare annual figures and businesses with similar prices.
Do new customers count in net revenue retention?
No. NRR only follows customers who were paying at the start of the period. Revenue from customers you won during the period is growth from sales, not retention. The calculator takes it separately and shows your total recurring revenue at the end and its growth.
How do I turn monthly NRR into annual NRR?
Compound it: annual NRR = (monthly NRR)^12. A 101% monthly NRR is about 112.7% a year, not 113%, and 99% a month is about 88.6% a year. Most benchmarks quote NRR over 12 months, which also smooths out seasonality, so compare the annual figure.
Related tools: churn rate calculator, customer lifetime value calculator, customer acquisition cost calculator. More on sales and running a sales team on the SalesBond blog and the home page.
Official sources
- Stripe, Net revenue retention (NRR) for SaaS businesses — NRR and GRR formulas, the 101% example and the 80% / 100% tiers.
- ChartMogul, Net Revenue Retention (NRR) — NRR = NDR, the cohort formula, measuring over 12 months.
- ChartMogul, Gross Revenue Retention (GRR) — GRR excludes expansion and is capped at 100%.
- Andreessen Horowitz, 16 Startup Metrics — customer, dollar and net dollar churn.
Updated on Nov 6, 2026. This calculator is for information only and is not tax, legal or payroll advice. Results come from the formulas above. Count revenue only from customers you had at the start of the period; monthly and annual rates are converted with compounding.
