NRR Calculator
Calculate Net Revenue Retention (NRR) from starting MRR and revenue movements.
NRR (Net Revenue Retention) measures how revenue from an existing customer cohort changes over a period, including expansion, contraction, and churn. It answers: do customers grow, shrink, or leave after they start-
NRR is most useful when measured by cohort and segment (plan, size, channel). A blended NRR can hide problems in parts of the business.
Prefer an explanation- Read the guide.
Need definitions- Browse the glossary.
NRR (Net Revenue Retention): definition, formula, how to calculateRetention & churn hub: cohorts, GRR/NRR, and retention curvesRevenue retention curves: GRR vs NRR over time (how to model)MRR forecasting: a simple bridge model (new, expansion, churn)
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Tip: you can type commas (e.g., 10,000).
Example
Using the default inputs, the result is:
102%
- Starting MRR
- $100,000
- Expansion MRR
- $15,000
- Contraction MRR
- $5,000
- Churned MRR
- $8,000
- Target NRR (optional)
- 0%
How to calculate
- Pick a cohort and time window (often monthly or quarterly).
- Measure starting MRR for that cohort at the beginning of the window.
- Add expansion MRR and subtract contraction and churned MRR.
- Compute NRR = ending MRR / starting MRR.
- Optional: add a target NRR to back-solve required expansion.
Formula
NRR = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR
- NRR measures an existing cohort only; exclude new customers in the period.
- All components use the same MRR definition and time window.
Benchmarks
- NRR > 100% means the cohort grows without new customers.
- NRR close to 100% can be healthy in SMB models if CAC payback is short.
FAQ
What is a good NRR-
NRR benchmarks vary by segment. NRR > 100% means the cohort grows without new customers. SMB businesses can succeed with NRR near 100% if CAC payback is short and margins are strong.
NRR vs GRR-
NRR includes expansion. GRR excludes expansion and focuses on durability after churn and downgrades.
Common mistakes
- Mixing new customer revenue into NRR (NRR is existing cohort only).
- Comparing NRR across segments without consistent definitions.
- Using revenue recognition instead of recurring MRR movements.
How to interpret
NRR best practices
- Track NRR by cohort, plan, and customer size (avoid blended averages).
- Pair NRR with logo churn to see whether growth comes from a few large accounts.
- Validate NRR with churned MRR trends and retention curves.
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Quick checks
- Keep time units consistent (monthly vs annual) across inputs and outputs.
- Segment by cohort/channel/plan before trusting a blended average.
- Use the related guide to avoid common definition and denominator mismatches.