Gross revenue retention

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Definition
Gross revenue retention (GRR) is a metric that measures how much recurring revenue you retain from your existing customers over a given period, excluding any new revenue from upsells, cross-sells, or expansions.

Prerequisite

Monthly recurring revenue (MRR) is the predictable revenue a business can expect each month from active subscriptions.

Formula

GRR = ((Starting MRR - Contraction MRR - Churned MRR) / Starting MRR) × 100

Importance

GRR measures pure retention without the influence of upsells or add-ons. It helps you understand how much recurring revenue is retained from existing customers.

A GRR of 100% means you retained all revenue from existing customers (no downgrades or churn).
A GRR below 100% indicates some revenue loss due to downgrades or customer exits.
Unlike NRR, GRR never exceeds 100% because it does not include expansion.

Visualizations

GRR chart

Description

The GRR chart shows how much recurring revenue is retained from existing customers, excluding expansion revenue.

Chart components

X-axis: Each month from July 2024 to May 2025.
Y-axis: The GRR percentage from 0% to 100%.
Data points: Each data point represents the GRR for a given month.

Interpretation & insights

From July to October 2024, GRR stayed close to 100%, suggesting stable customer retention.
In December 2024 and February 2025, GRR dipped—likely due to a combination of churn or downgrades.
The overall trend remains strong, showing consistent performance in retaining base revenue over time.

GRR table

Column	Description
Posting Date: Month	The month for which the GRR is calculated.
Starting MRR	Monthly recurring revenue at the start of the month, from existing customers.
Contraction MRR	Revenue lost due to downgrades (customers paying less for the same product/service).
Churn MRR	Revenue lost due to complete cancellations.
GRR	Gross Revenue Retention for the month, calculated as:<br> `(Starting MRR - Contraction MRR - Churn MRR) ÷ Starting MRR × 100`

Interpretation & insights

June 2025:
- Starting MRR: $191,207.51
- Contraction: -$3,273.67
- Churn: -$3,258.32
- GRR = 96.58% → Indicates 3.42% revenue was lost from existing customers.
May 2025:
- No contraction or churn → GRR = 100%
February 2025:
- High churn ($4,220.5) → GRR = 95.52%, a noticeable dip in retention.

Related concepts

Use GRR alongside NRR to get a fuller picture:

GRR helps measure revenue stability.
NRR helps measure growth from your existing base.

Updated about 7 hours ago