What is a good Net Revenue Retention rate?

A good NRR is 100% or higher, meaning you earn at least as much from existing customers as you started with. Best-in-class B2B SaaS companies often achieve 110-130% NRR through upsells and expansion.

How is NRR different from gross retention?

Gross retention only accounts for churn and contraction, ignoring expansion. NRR includes expansion revenue, so it can exceed 100%. NRR is usually the preferred metric for growth-focused SaaS.

Why does NRR matter for SaaS valuation?

High NRR signals that customers stay, expand, and drive predictable revenue. Investors value this because it reduces risk and supports higher multiples on revenue.

Net Revenue Retention for SaaS Founders

What is Net Revenue Retention?

Net Revenue Retention (NRR) measures how much revenue you keep from existing customers after accounting for churn, contraction, and expansion. It shows whether your base is growing or shrinking.

Why Net Revenue Retention matters for SaaS founders

NRR above 100% means you earn more from existing customers than you lose. Investors love high NRR because it indicates strong product stickiness and upsell potential. It is a key SaaS health metric.

How to calculate Net Revenue Retention

Start with beginning MRR, add expansion revenue, subtract churn and contraction, then divide by beginning MRR and multiply by 100.

(Starting MRR + Expansion − Churn − Contraction) / Starting MRR × 100

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Net Revenue Retention Calculator

Starting MRR ($)

Expansion revenue ($)

Churned revenue ($)

Contraction revenue ($)

Example calculation

($50,000 + $8,000 − $3,000 − $2,000) / $50,000 × 100
$53,000 / $50,000 × 100
106%

Result: 106%

Your NRR is 106%. You retained and grew revenue from existing customers. Strong signal for investors.

Benchmarks & best practices

Early-stage: Early-stage SaaS often sees 80-95% NRR as they refine product and pricing.
Healthy range: Healthy NRR is typically 100% or above. Best-in-class B2B SaaS often exceeds 110%.
Warning range: NRR below 90% suggests significant churn or contraction. Worth investigating retention strategies.

Frequently Asked Questions

What is a good Net Revenue Retention rate?: A good NRR is 100% or higher, meaning you earn at least as much from existing customers as you started with. Best-in-class B2B SaaS companies often achieve 110-130% NRR through upsells and expansion.
How is NRR different from gross retention?: Gross retention only accounts for churn and contraction, ignoring expansion. NRR includes expansion revenue, so it can exceed 100%. NRR is usually the preferred metric for growth-focused SaaS.
Why does NRR matter for SaaS valuation?: High NRR signals that customers stay, expand, and drive predictable revenue. Investors value this because it reduces risk and supports higher multiples on revenue.