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Net Revenue Retention (NRR) Calculator

Calculate net and gross revenue retention from expansion, contraction and churn.

About Net Revenue Retention (NRR) Calculator

NRR includes expansion revenue and can therefore exceed 100 per cent, while gross retention excludes it and is capped at 100. Comparing the two separates genuine account growth from the underlying churn rate. An NRR above 100 per cent means revenue grows even with no new customers, which is what allows a business to compound without proportional sales spend.

Formula

Net Revenue Retention (NRR)

NRR = (start + expansion − contraction − churn) ÷ start; GRR excludes expansion

NRR
Includes expansion, so it can exceed 100 per cent
GRR
Excludes expansion, so it is capped at 100 per cent

Worked example

With the default values below, Net Revenue Retention (NRR) Calculator returns Net Revenue Retention of 103.200%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Starting recurring revenueminimum 0.01
250,000
Expansion revenueminimum 0
32,000
Contraction revenueminimum 0
9,000
Churned revenueminimum 0
15,000

Results

Net Revenue Retention
103.200%
Gross Revenue Retention
90.400%
Ending Recurring Revenue
$258,000.00
Net Change in Recurring Revenue
$8,000.00
Rating Band
Healthy — revenue grows without new customers

Step by step

  1. 1Values used
  2. 2Net Revenue Retention (NRR)
  3. 3Net Revenue Retention= 103.200
  4. 4Gross Revenue Retention= 90.400
  5. 5Ending Recurring Revenue= 258,000.00
  6. 6Net Change in Recurring Revenue= 8,000.00
  7. 7Rating Band= Healthy — revenue grows without new customers

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Net Revenue Retention (NRR) calculated?

NRR = (start + expansion − contraction − churn) ÷ start; GRR excludes expansion NRR includes expansion revenue and can therefore exceed 100 per cent, while gross retention excludes it and is capped at 100. Comparing the two separates genuine account growth from the underlying churn rate.

Why does Net Revenue Retention (NRR) matter?

An NRR above 100 per cent means revenue grows even with no new customers, which is what allows a business to compound without proportional sales spend.

What values do I need to enter?

This calculator takes 4 inputs: Starting recurring revenue, Expansion revenue, Contraction revenue, Churned revenue. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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