Net Revenue Retention
Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing customers over a period, including expansions, contractions, and churn. It's the ultimate indicator of product-market fit.
Starting MRR: $100K. Expansion: $15K. Contraction: $5K. Churn: $8K. NRR = ($100K + $15K - $5K - $8K) / $100K = 102%
NRR above 100% means you can grow even without acquiring new customers. Existing customers are expanding faster than others are churning. This is the holy grail metric that investors obsess over. Top-tier SaaS companies have 120%+ NRR.
World-class
Excellent
Good
Needs work
GRR (Gross Revenue Retention) excludes expansion revenue. It only measures how much existing revenue you kept. NRR includes upsells and expansions. GRR can never exceed 100%; NRR can.
Most Series A investors want to see NRR above 100%, ideally 110%+. It proves customers love your product enough to buy more over time.
Focus on three levers: reduce churn (better onboarding, customer success), reduce contraction (usage-based pricing, right-sized plans), and increase expansion (upsells, cross-sells, seat expansion).
We build real-time dashboards that track NRR and every other metric investors care about. Updated daily. Investor-ready.
