NRR Calculator
Calculate net revenue retention (NRR) and gross revenue retention (GRR) from your MRR movements, for a month, a quarter or a year, and see both rates annualized.
Last updated October 2026 · Formula, worked example and sourced benchmarks below
Calculate NRR and GRR
MRR at the start of the period. Leave out customers who joined during it.
Upgrades, extra seats, add-ons and price increases from those customers
Downgrades and seat reductions, as a positive number
MRR from customers who cancelled, as a positive number
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The Formulas
Net revenue retention shows how much revenue your existing customers bring in at the end of the period compared with the start, including upgrades. Above 100% means they grow on their own.
Gross revenue retention leaves expansion out, so it shows only what you lose. It can never be above 100%.
How the Calculator Rates Annualized NRR
The middle band is anchored on the 101% median NRR in SaaS Capital's 2025 survey, which also calls GRR of at least 90% table stakes. More benchmarks below.
How to calculate net revenue retention (NRR)
Net revenue retention measures how much recurring revenue you keep, and grow, from the customers you already had at the start of a period. Gross revenue retention is the same calculation without upgrades. Five steps:
- Fix the customer set. Take the MRR from customers who were active at the start of the period. Customers who join during the period are left out, including any upgrades they make.
- Add expansion MRR from those customers: upgrades, extra seats, add-ons and price increases.
- Subtract contraction MRR: downgrades, seat reductions and new discounts.
- Subtract churned MRR from customers who cancelled.
- Divide by starting MRR. For GRR, skip step 2.
GRR = (Starting MRR - Contraction - Churned MRR) / Starting MRR x 100
Annualized rate = Period rate ^ (periods per year)
Worked example
A SaaS company starts the month with $80,000 in MRR. During the month, existing customers add $1,280 in upgrades, downgrade by $240, and customers paying $400 a month cancel.
- NRR: ($80,000 + $1,280 - $240 - $400) / $80,000 = $80,640 / $80,000 = 100.8%
- GRR: ($80,000 - $240 - $400) / $80,000 = $79,360 / $80,000 = 99.2%
- Annualized NRR: 1.008^12 = 110.0%
- Annualized GRR: 0.992^12 = 90.8%
A month that looks almost flat compounds into 110% NRR if it repeats for a year. At the same time, the small monthly losses add up to about 9% of starting revenue lost to cancellations and downgrades. Expansion is what turns the second number into the first.
Monthly vs annual NRR
Published benchmarks are almost always annual, while many teams track NRR every month. Never compare a monthly figure with an annual benchmark: 100.8% a month is roughly 110% a year, and 99% a month is under 89% a year.
Annualizing by compounding assumes the same monthly rates repeat for twelve months, so it is a projection. The cleaner annual measure is cohort-based: MRR today from customers who were active twelve months ago, divided by their MRR back then. That is the definition SaaS Capital uses in its survey. For usage-based or hybrid pricing, the Benchmarkit 2025 report recommends a year-over-year or trailing twelve-month view so that seasonality does not distort the result.
Common NRR mistakes
- Including new customers. Revenue and upgrades from customers who joined during the period belong in new MRR, not in retention.
- Letting expansion rescue GRR. When you calculate GRR customer by customer, cap each customer at their starting MRR. An upgrade from one customer must not hide a downgrade from another.
- Comparing monthly NRR with annual benchmarks. See above.
- Counting billing noise as movement. Exchange-rate swings, one-off credits and plan migrations can look like expansion or contraction. Use constant exchange rates and ignore non-recurring items.
- Ignoring concentration. One large customer's upgrade can carry NRR for a quarter. Check how much of your expansion comes from your top accounts.
What's a good NRR and GRR?
| Benchmark | Value | Source |
|---|---|---|
| Median NRR, private B2B SaaS | 101% | SaaS Capital, 2025 |
| Median GRR, private B2B SaaS | 91% | SaaS Capital, 2025 |
| Median NRR by contract value | 98% under $12k ACV, 106% over $250k ACV | SaaS Capital, 2025 |
| Median NRR / GRR | 101% / 88% | Benchmarkit, 2025 |
| Best-in-class NRR, B2B mid-market and enterprise | 115–125% | ChartMogul, 2023 |
| GRR across ARR ranges (VC-backed cloud companies) | 85–90% | Bessemer, 2021 |
SaaS Capital's 2025 survey of more than 1,000 private B2B SaaS companies calls GRR of at least 90% table stakes, and found that growth rises steeply with NRR: companies at 110–120% NRR grew 9 percentage points faster than those at 100–110%, and those with the highest NRR grew at double the 24% median. The Benchmarkit 2025 report found median GRR slipping from 90% to 88% over three years, and a higher median NRR (110%) for hybrid subscription-plus-usage pricing than for either model alone.
Price point matters a lot. ChartMogul found that only 2.7% of SaaS businesses with ARPA under $10 a month had NRR above 100%, against 41.1% of those with ARPA over $500. Bessemer notes that successful SMB-focused businesses can run at 70–80% gross retention, below the 85–90% typical across its portfolio.
How this calculator works
- Period: pick the length your numbers cover. Annualized rates raise the period rate to the 12th power for a month, the 4th for a quarter, and leave annual figures unchanged.
- NRR is (starting MRR + expansion - contraction - churned MRR) / starting MRR. GRR is the same without expansion.
- Ending MRR is what the starting customers pay at the end of the period.
- Reactivation: if a customer from the starting set cancels and comes back within the period, add the MRR they return with to expansion. GrowPanel's NRR report shows it as a separate reactivation line, with trailing 1-month and 12-month windows.
- The verdict uses annualized NRR: below 90%, 90–100%, 100–110%, and 110% or higher. It also flags whether annualized GRR reaches 90%.
- Limitations: annualizing a single month is a projection, and one period can be skewed by a single large upgrade or cancellation. Contraction plus churn cannot exceed starting MRR. The math runs in your browser.
Related metrics and guides
- NRR (net revenue retention) and GRR (gross revenue retention), the full guides
- Expansion MRR and contraction MRR, the two sides of the movement
- Net negative churn, what NRR above 100% looks like in MRR terms
- Cohort analysis, for true trailing twelve-month NRR
See the customer count side with the churn rate calculator, or weigh new and lost MRR together with the SaaS quick ratio calculator.
More free SaaS calculators
- Churn Rate Calculator Customer and revenue churn, monthly and annualized.
- LTV Calculator Customer lifetime value from ARPA, churn and gross margin.
- LTV:CAC Ratio Calculator LTV to CAC ratio plus a quick payback check.
- CAC Payback Calculator Months of gross profit needed to recover CAC.
- SaaS Quick Ratio Calculator MRR added for every dollar of MRR lost.
- Rule of 40 Calculator Growth rate plus profit margin, with the gap to 40.
- SaaS Valuation Calculator Enterprise and equity value from ARR multiples.
See all free SaaS calculators or browse the SaaS Academy for definitions of every metric.
Frequently asked questions
Take the MRR you had at the start of a period from existing customers, add expansion MRR from those customers, subtract their contraction and churned MRR, and divide by the starting MRR. With $80,000 starting MRR, $1,280 expansion, $240 contraction and $400 churn, NRR is 80,640 / 80,000 = 100.8% for the month. New customers are left out.
GRR is starting MRR minus contraction and churned MRR, divided by starting MRR. It ignores expansion, so it can never be above 100%. In the same example, GRR is (80,000 - 240 - 400) / 80,000 = 99.2% for the month.
SaaS Capital's 2025 survey of more than 1,000 private B2B SaaS companies found a median NRR of 101% and a median GRR of 91%. ChartMogul puts best-in-class NRR for B2B SaaS selling to mid-market and enterprise customers at 115% to 125%. Companies with smaller contract values typically have lower NRR.
Both measure revenue kept from existing customers. NRR includes expansion (upgrades, add-ons, price increases), so it can exceed 100%. GRR excludes expansion and shows only how much revenue you lose to cancellations and downgrades, so it is capped at 100%.
Raise the monthly rate to the 12th power. 100.8% monthly NRR is 1.008^12 = about 110% a year, and 99.2% monthly GRR is about 90.8% a year. This assumes the same monthly rates repeat for a year; a cohort-based trailing 12-month NRR is the more precise annual measure.
Yes. NRR above 100% means expansion from existing customers is larger than what you lose to churn and downgrades, so your revenue would grow even with zero new customers. This is also called net negative churn. GRR can never be above 100%.
Sources
- SaaS Capital: 2025 B2B SaaS Retention Benchmarks (Research Brief 32) (2025, survey of 1,000+ private B2B SaaS companies)
- Benchmarkit and Pavilion: 2025 B2B SaaS Performance Metrics Benchmarks (May 2025, 583 participants)
- ChartMogul: SaaS Retention Report 2023 (March 2023, data from 2,100+ SaaS businesses)
- Bessemer Venture Partners: Scaling to $100 Million (September 2021)
Benchmarks change as markets move. Each figure on this page is quoted with the publisher and date of the data so you can judge how current it is.
Track NRR and GRR automatically
GrowPanel's subscription analytics splits every MRR change into new, expansion, contraction, churn and reactivation, so NRR and GRR are calculated from your real billing history.
