Retention Targets Planner (NRR/GRR)

Compute required expansion (for a target NRR) and allowable churn+contraction (for a target GRR) using monthly rates.

Targets are only useful if they translate into actionable levers. NRR targets translate into required expansion; GRR targets translate into a maximum combined churn+contraction.

This calculator uses monthly rates and shows implied annualized outcomes to help planning.

Prefer an explanation- Read the guide.
 
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Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:
4%
Monthly churn rate (revenue)
1.5%
Monthly contraction rate
0.5%
Target monthly NRR
102%
Target monthly GRR
98%
Current monthly expansion (optional)
2%

How to calculate

  1. Enter current monthly churn and contraction rates (revenue).
  2. Enter your target monthly NRR and GRR.
  3. Use outputs to set expansion targets and churn reduction goals by segment.

Formula

Target NRR = 1 + expansion - contraction - churn; Target GRR = 1 - contraction - churn
  • Rates are monthly and measured on the same revenue base.
  • Target NRR/GRR are for an existing cohort (exclude new customers).
  • Annualized rates are compound transformations of monthly targets.

FAQ

Why annualizing monthly NRR/GRR can look extreme-
Because compounding is powerful. A small monthly difference compounds over 12 months, so always sanity-check annualized implied outcomes.
Should I set targets by segment-
Yes. Blended NRR/GRR can hide weak segments. Set targets by plan, channel, cohort, and customer size to make them actionable.

Common mistakes

  • Mixing annual and monthly units (annual NRR used as monthly).
  • Using blended rates across segments (plan/channel) and hiding weak cohorts.
  • Assuming churn reduction and expansion are independent (often correlated).

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.