Quick answer
How do you calculate Net Revenue Retention?
Use NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR × 100. Enter the matching values above to calculate the result instantly.
What it measures
Understanding Net Revenue Retention
Calculate recurring revenue retained after expansion, contraction, and churn. NRR above 100% means expansion from the starting cohort exceeded revenue lost to downgrades and churn.
Interpretation
What the result means
The result measures recurring revenue retained from the opening customer base without including new-logo revenue.
Action
How to use it
Track NRR by cohort, segment, geography, and product to reveal where expansion and retention differ.
Limits
What it leaves out
Currency changes, usage revenue, migrations, acquisitions, and inconsistent MRR normalization can distort the metric.
The math
Net Revenue Retention formula
Worked example
Example calculation
- Calculation
- ($500,000 + $45,000 − $12,000 − $28,000) ÷ $500,000 × 100
- Result
- 101% NRR
Step by step
How to use this calculator
- 1Enter starting mrr, expansion mrr, contraction mrr, churned mrr.
- 2Keep every input on the same time period and measurement basis.
- 3Review the result, then change one assumption at a time to test scenarios.
Decision support
When this calculator is useful
- Retention reporting
- Expansion analysis
- SaaS forecasting
Common questions
Frequently asked questions
Which inputs should I use for Net Revenue Retention?
Use starting mrr, expansion mrr, contraction mrr, churned mrr, measured from the same source and period. Include only values that match the definitions shown beside each field.
Why might two Net Revenue Retention calculations differ?
The systems or accounting policies may define starting mrr, expansion mrr, contraction mrr, churned mrr differently. Compare the time period, scope, source, and treatment of exceptional items before comparing results.
How often should I recalculate Net Revenue Retention?
Recalculate when any input changes materially and on the same reporting cadence used for the decision. Save the source and date of each input so the trend remains comparable.
Can I use Net Revenue Retention by itself?
No single metric captures the full decision. Use the result with the related measures, assumptions, and limitations shown on this page.
Calculation reviewed: 2026-06-18. CalcPilot uses the formula shown above and tests representative values during the production build. See our methodology and correction policy.
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