GRR (Gross Revenue Retention)

Definition

GRR measures how much of a cohort's starting revenue remains after churn and downgrades, excluding expansion.

Formula

GRR = (starting MRR - contraction - churn) / starting MRR

Example

If starting MRR is $100k, contraction is $5k, and churn is $10k, GRR = ($100k-$5k-$10k)/$100k = 85%.

How to use it

• GRR isolates durability (product stickiness) from expansion.
• Use GRR to validate that growth isn't masking underlying churn.

Common mistakes

• Including expansion in GRR (by definition it's excluded).
• Mixing cohorts or time windows (start from one cohort, losses from another).

Why this matters

This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.

Practical checklist

• Write a 1-line definition for "GRR (Gross Revenue Retention)" that your team will use consistently.
• Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
• Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
• Use a calculator that references this term (e.g., GRR Calculator) to sanity-check assumptions.
• Read the related guide (e.g., GRR (Gross Revenue Retention): definition, formula, how to calculate) for context and common pitfalls.

Where to use this on MetricKit