Startup metrics
Net revenue retention calculator
Net revenue retention shows whether existing customers grow or shrink. It is one of the first numbers SaaS investors ask for.
Use one cohort: customers present at the start of the period. New customers won during the period are excluded.
How it works
NRR takes recurring revenue from a group of customers at the start of a period and compares it with revenue from the same customers at the end, including upgrades and losses.
GRR counts only losses (contraction and churn), so it can never exceed 100%. It shows how well you keep revenue before any upsell.
The formula
- StartRecurring revenue from customers at the start of the period.
- NRR(Start + expansion - contraction - churn) / start.
- GRR(Start - contraction - churn) / start.
Worked example
$100,000 at the start, $15,000 expansion, $3,000 contraction and $5,000 churn give 107% NRR and 92% GRR.
Put the numbers in your data room
Put the cohort table behind your NRR in the data room. Investors check that new customers were excluded and that one-off fees were not counted.
Net revenue retention calculator FAQ
What is a good NRR?
Above 100% means existing customers grow; above 120% is strong for B2B software.
Monthly or annual?
Usually measured over twelve months; monthly figures are noisy.
Does NRR include new customers?
No, only customers present at the start of the period.