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Net Revenue Retention (NRR) Calculator [2025]
Measure your SaaS or subscription business's ability to retain and grow revenue from existing customers.
Net Revenue Retention (NRR) Calculator
What is Net Revenue Retention (NRR)?
Net Revenue Retention (NRR) is a key metric, especially for SaaS and subscription-based businesses, that measures the percentage of recurring revenue retained from existing customers over a specific period. It takes into account revenue gained from expansions (upsells, cross-sells) and revenue lost from churn (cancellations, downgrades).
How to Use the Calculator
- Enter Starting MRR: Input your Monthly Recurring Revenue (MRR) at the beginning of the period you want to measure.
- Enter Expansion MRR: Input the additional MRR generated from existing customers during the period (e.g., through upselling or cross-selling).
- Enter Churned MRR: Input the MRR lost during the period due to cancellations or downgrades.
- Calculate: Click the "Calculate NRR" button.
- View Results: The calculator will display the Net Revenue Retention (NRR) as a percentage, along with the input values.
Why is NRR Important for SaaS Businesses?
Measures Customer Success and Loyalty
A high NRR indicates that customers are satisfied with your product or service and are finding enough value to not only continue using it but also to expand their usage.
Predicts Revenue Growth
NRR is a strong indicator of future revenue growth. An NRR above 100% means that your existing customer base is generating more revenue over time, even without acquiring new customers.
Indicates Financial Health
NRR provides insights into the overall financial health and sustainability of your business. Investors often look at NRR as a key metric when evaluating SaaS companies.
Frequently Asked Questions
What is a good NRR?
Generally, an NRR above 100% is considered good for SaaS businesses. Top-performing SaaS companies often have an NRR above 120%. However, a "good" NRR can vary depending on the industry, business model, and company stage.
How can I improve my NRR?
- Focus on Customer Success: Ensure that your customers are achieving their desired outcomes by using your product or service.
- Reduce Churn: Identify and address the reasons why customers are leaving.
- Drive Expansion Revenue: Identify opportunities to upsell or cross-sell to existing customers.
- Improve Onboarding: Make sure new customers have a smooth and positive onboarding experience.
- Build Relationships: Foster strong relationships with your customers through regular communication and engagement.
What's the difference between NRR and Gross Revenue Retention (GRR)?
NRR accounts for both expansion revenue and churned revenue, while GRR only considers churn. GRR will always be 100% or less, as it doesn't factor in expansion revenue. NRR, on the other hand, can be greater than 100% if expansion revenue exceeds churned revenue.
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