Net revenue retention
Net revenue retention is the percentage of revenue retained from an existing cohort of customers over a period, including expansion, contraction and churn, but excluding revenue from new customers.
Also called nrr, net dollar retention.
Above 100% means the existing base grew on its own. Gross revenue retention is the same measure with expansion removed, so it never exceeds 100% and isolates how much you lost.
Usage-based businesses tend to report higher NRR because consumption grows without a renewal conversation, which also makes it more sensitive to a customer's own demand rather than to their satisfaction.
Common questions
- How is net revenue retention calculated?
Take the revenue from a cohort of customers at the start of a period, add expansion, subtract contraction and churn, then divide by the starting revenue. Revenue from customers acquired during the period is excluded.
- What is the difference between NRR and GRR?
Net revenue retention includes expansion, so it can exceed 100%. Gross revenue retention excludes expansion and counts only contraction and churn, so it can never exceed 100% and isolates how much of the base was lost.