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.
 
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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

  1. Pick a cohort and time window (often monthly or quarterly).
  2. Measure starting MRR for that cohort at the beginning of the window.
  3. Add expansion MRR and subtract contraction and churned MRR.
  4. Compute NRR = ending MRR / starting MRR.
  5. 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.

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.