Net revenue retention
DefinitionNet revenue retention (NRR) is the percentage of revenue retained from existing customers over a period, including upgrades, downgrades, and cancellations.
Formula
NRR = (Starting MRR + Expansion – Contraction – Churn) / Starting MRR
Importance
NRR is a key SaaS metric that shows how much recurring revenue you retain from your existing customer base over time, including upsells, expansions, downgrades, and churn.
NRR (%) answers the question: "If I start the month with $100 in recurring revenue from existing customers, how much do I have at the end after upgrades, downgrades, and churn?"
- NRR > 100% → Revenue is growing from the existing customer base (healthy sign).
- NRR = 100% → No net change from existing customers.
- NRR < 100% → Losing net revenue from existing customers.
NRR is a strong indicator of product stickiness and customer satisfaction. A consistently high NRR shows that customers:
- Stay subscribed
- Expand their usage
- Are less likely to churn
Visualizations
NRR chart

Description
The NRR line chart visualizes net revenue retention.
Chart components
- X-axis: Time (monthly intervals from Jan 2024 to May 2025).
- Y-axis: NRR percentage (0% to 120%).
- Line trend: Tracks how NRR fluctuated month over month.
Interpretation & insights
- NRR mostly hovers around 100%, showing stable retention.
- Occasional dips (e.g., around Mar 2025) indicate possible contraction or churn.
- Occasional rises (e.g., Apr 2025) suggest expansion or upsells among existing customers.
NRR table

Table layout
Column | Description |
---|---|
Posting date: Month | The period for which revenue is measured |
Starting MRR | Recurring revenue at the beginning of the month |
Expansion MRR | Revenue growth from existing customers (e.g., upsells or usage increases) |
Contraction MRR | Revenue lost from downgrades or reduced usage |
Churn MRR | Revenue lost due to cancellations or customer exits |
NRR | Net Revenue Retention rate = (Starting MRR + Expansion MRR − Contraction MRR − Churn MRR) / Starting MRR; displayed as a percentage and visual bar |
Interpretation & insights
- Use the table to track revenue trends, identifying months with significant expansion or decline.
- Spot months with high churn or contraction and investigate root causes.
- Compare NRR alongside growth and customer success initiatives.
- Examples from the table:
- May 2025 shows no churn or contraction, resulting in a strong NRR of 102.8%.
- February 2025 reveals a significant –4,220.50 churn MRR, pulling NRR down to 95.52% despite a high starting MRR.
Updated about 6 hours ago