NRR (Net Revenue Retention)
NRR (Net Revenue Retention) measures how much recurring revenue you keep from an existing customer cohort over a period, after churn and contraction but including expansion. NRR above 100% means the existing base grows by itself, before any new sales.
Formula
Worked example
A cohort starting at $200,000 MRR that adds $16,000 expansion and loses $9,000 to churn and contraction ends at $207,000: NRR of 103.5% for the period.
NRR is the single number public-market investors weight most heavily in SaaS, because it compounds: at 120% NRR a company doubles revenue from existing customers alone in under four years. Best-in-class enterprise SaaS runs 110–130%; SMB-focused products typically sit at 90–105% because small businesses fail and downgrade more.
Only revenue from customers present at the period start counts — new logos acquired during the period are excluded from both numerator and denominator.
Compute it: NRR calculator