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NRR / GRR / SAAS

Net revenue retention (NRR) calculator

Work out net revenue retention (NRR) and gross revenue retention (GRR): how much of last period's recurring revenue your existing customers still pay, with upgrades.

By the CalcBloc teamLast verified Updated

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01Customers

Figures cover one

02Revenue from those customers

Net revenue retention per month

101%

112.7% a year if it repeats · GRR 97%

Gross revenue retention
97%
NRR, annualised
112.7%
GRR, annualised
69.4%
MRR from existing customers now
$101,000
  • NRR = (starting MRR − churned − contraction + expansion) ÷ starting MRR, for customers who were already paying at the start. Revenue from new customers is excluded. Above 100% means the existing base grows on its own.
  • GRR = (starting MRR − churned − contraction) ÷ starting MRR: the same, without expansion, so it is capped at 100%.
  • Public SaaS companies typically compute NRR on a cohort basis: annual recurring revenue now from customers who were customers 12 months ago, divided by their ARR then. For a monthly figure, the yearly equivalent assumes the monthly rate repeats.

Net revenue retention per month: 101% 112.7% a year if it repeats · GRR 97%

Revenue from the customers you started with
Show the breakdownMRR
Starting MRR$100,000
Churned−$2,000
Contraction (downgrades)−$1,000
Expansion (upgrades, add-ons)$4,000
Same customers' MRR nowNRR 101%$101,000
Starting vs retained MRR
  • Starting MRR$100,000
  • Kept (GRR)$97,000
  • With expansion (NRR)$101,000

101%

112.7% a year if it repeats · GRR 97%

How it's calculated

Net revenue retention (NRR) asks: of the recurring revenue your customers paid at the start of a period, how much do those same customers pay now? Cancellations and downgrades pull it down; upgrades, add-ons and price increases push it up. Revenue from new customers is left out, so NRR isolates how your existing base grows or shrinks on its own.

Public SaaS companies define it in their annual reports. Datadog takes the ARR of all customers 12 months earlier and compares it with the ARR from the same customers now, including expansion and net of contraction and attrition, excluding new customers.SEC (EDGAR) Snowflake uses product revenue from a customer cohort over two consecutive years.SEC (EDGAR) Gross revenue retention (GRR) is the same measure without expansion: Workday describes it as taking account of revenue lost to churn "but does not account for additional revenue earned from add-ons or net expansions".SEC (EDGAR)

The formula

  • NRR = (starting MRR − churned MRR − contraction MRR + expansion MRR) ÷ starting MRR
  • GRR = (starting MRR − churned MRR − contraction MRR) ÷ starting MRR
  • Annual NRR from a monthly figure = monthly NRR12 (if the monthly rate repeats)

Worked example

$100,000 of starting MRR that loses $2,000 to cancellations and $1,000 to downgrades but gains $4,000 from upgrades has an NRR of 101% for the month and a GRR of 97%. If that month repeats, NRR over a year is 112.7%.

$100,000 starting MRR, one monthNRR / GRR 97%
LineMRR
Starting MRR$100,000
Churned-$2,000
Contraction (downgrades)-$1,000
Expansion (upgrades, add-ons)$4,000
Same customers' MRR now$101,000

If you enter a full year's figures instead (choose "Year"), the result is directly comparable with the yearly NRR that public companies report.

Assumptions and limitations

  • Cohort definitions differ. Companies treat merged accounts, small customers and usage revenue differently; compare like with like.
  • Monthly-to-annual conversion assumes a steady rate. A cohort measured over 12 months is more reliable.
  • NRR above 100% can hide churn: a few large customers expanding can offset many small ones leaving. GRR shows the losses on their own.
FAQ

Questions people ask

How do you calculate net revenue retention?

Take the recurring revenue from customers who were already paying at the start of the period, subtract what they cancelled and downgraded, add what they upgraded, and divide by their starting recurring revenue. New customers are excluded. $100,000 of starting MRR with $3,000 lost and $4,000 of expansion gives an NRR of 101%.

What is the difference between NRR and GRR?

Gross revenue retention counts only losses: churn and downgrades. It can never exceed 100% and shows how well you keep revenue. Net revenue retention also adds expansion from upgrades, add-ons and price increases, so it can be above 100%. Investors look at both: a high NRR built on a weak GRR depends heavily on a few expanding customers.

How do public companies calculate NRR?

Most use a 12-month cohort: they take the customers who were paying at a date a year ago, compare those customers' annual recurring revenue now with what it was then, and often average this over the last four quarters. Definitions differ between companies, for example in how they treat customers that merge or revenue below a threshold, so read each company's definition.

Is NRR the same as net dollar retention?

Yes. Net revenue retention, net dollar retention and dollar-based net retention are different names for the same idea: revenue from an existing group of customers now, divided by their revenue a period earlier. Check whether a figure is measured monthly or annually, because a monthly NRR of 101% compounds to about 113% over a year.

Why does NRR matter so much?

NRR above 100% means the business grows from its existing customers before it wins any new ones, so every new customer adds on top. It also signals that customers find more value over time. Because the effect compounds year after year, small differences in NRR lead to large differences in revenue over five or ten years.

Sources

  1. U.S. Securities and Exchange Commission (EDGAR)Snowflake Inc. Form 10-K for fiscal 2026: net revenue retention rate · retrieved 2026-10-20
  2. U.S. Securities and Exchange Commission (EDGAR)Workday, Inc. Form 10-K for fiscal 2026: gross retention rate · retrieved 2026-10-20

By the CalcBloc teamLast verified Updated

How every figure is checked: methodology.