Definition
Gross retention is the same idea as GRR: revenue retained from a cohort excluding expansion (only churn and contraction).
Formula
Gross retention = (starting revenue - contraction - churn) / starting revenue
Measured as
Gross retention = (starting revenue - contraction - churn) / starting revenue
Operator takeaway
- Keep Gross Retention consistent by cohort, segment, and period before you use it as a decision signal in planning or reporting.
- Interpret the metric alongside retention, margin, or payback so one ratio does not hide the real operating trade-off.
Next decision
- Quantify the impact with Retention Curve Calculator if you need to turn the definition into an operating assumption.
- Read Retention curves: how to read them and why they matter if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
Where to use this on MetricKit
Calculators
- Retention Curve Calculator: Model a simple cohort retention curve (logo retention) and translate it into expected revenue and gross profit over time.
- Revenue Retention Curve Calculator: Model GRR and NRR over time from monthly expansion, contraction, and churn assumptions (existing cohort only).
- Retention Targets Planner (NRR/GRR): Compute required expansion (for a target NRR) and allowable churn+contraction (for a target GRR) using monthly rates.
Guides
- Retention curves: how to read them and why they matter: A practical guide to retention curves: what they show, how to interpret churn vs retention, and how to connect retention to LTV and payback.
- Revenue retention curves: GRR vs NRR over time (how to model): A practical guide to revenue retention curves: how GRR and NRR compound, how to interpret expansion vs churn, and how to avoid common mistakes.
- NRR/GRR targets: how to translate targets into expansion and churn goals: A practical guide to retention targets: how NRR maps to required expansion and how GRR maps to maximum churn+contraction (with monthly vs annual units).
- Retention & churn hub: cohorts, GRR/NRR, and retention curves: A practical hub for retention measurement: churn rate, GRR/NRR, cohort retention curves, and how to set retention targets without getting misled by noise.