Metrics
Net Revenue Retention (NRR)
Quick definition
Revenue from your existing customer base 12 months later, including expansion and churn.
NRR = (Starting ARR + Expansion − Contraction − Churn) / Starting ARR, measured on a fixed cohort over 12 months. Best-in-class SaaS companies see NRR above 120%. Below 100% means the base is shrinking.
Related metrics terms
ARR (Annual Recurring Revenue)
Annualized value of your subscription revenue at a point in time.
MRR (Monthly Recurring Revenue)
Monthly equivalent of ARR, useful for month-over-month tracking.
Gross Revenue Retention (GRR)
NRR without upsell — what you keep before expansion.
CAC (Customer Acquisition Cost)
Fully-loaded cost to acquire one new customer.
See this in action
Insights and tools where Net Revenue Retention (NRR) shows up.
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