Net Revenue Retention Calculator Widget
Show whether existing customers grow the business on their own. Enter a cohort's starting recurring revenue and its expansion, contraction and churned revenue to get net and gross revenue retention, with a bar of what was kept, gained and lost.
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How it works
Net revenue retention (also called net dollar retention) takes the recurring revenue a set of customers produced at the start of a period and asks what that same set produces at the end. Upgrades, extra seats and add-ons are expansion; downgrades are contraction; cancelled accounts are churned revenue. NRR = (start + expansion - contraction - churned) / start, so 100,000 of starting MRR with 15,000 expansion, 3,000 contraction and 5,000 churn gives 107%: the cohort grew 7% with no new sales. Gross revenue retention leaves expansion out - (100,000 - 3,000 - 5,000) / 100,000 = 92% - and by definition can never exceed 100%, which is why investors read it as the floor of the revenue base. The figures can be monthly or annual, as long as all four come from the same cohort and period. Losses larger than the starting revenue are refused.
Calculation method
- NRR = (starting recurring revenue + expansion - contraction - churned) / starting recurring revenue
- GRR = (starting recurring revenue - contraction - churned) / starting recurring revenue, capped at 100%
- Ending cohort revenue = start + expansion - contraction - churned
- Only customers active at the start are included; new-customer revenue is excluded
Worked examples
Expanding cohort
Inputs: Start 100,000; expansion 15,000; contraction 3,000; churned 5,000
Result: NRR 107.0%; GRR 92.0%; ending revenue 107,000
Expansion more than covered the 8,000 lost - net negative churn.
Shrinking cohort
Inputs: Start 200,000; expansion 10,000; contraction 20,000; churned 30,000
Result: NRR 80.0%; GRR 75.0%
The company must win 40,000 of new revenue just to stand still.
An illustration of standard retention definitions, not financial or investment advice.
Limitations
- Needs cohort-level figures; using total company MRR at both ends would mix in new customers.
- Currency and price-list changes during the period show up as expansion or contraction.
- One period at a time - it does not build a multi-year cohort table.
Where publishers use it
- Investor memos and board decks explaining expansion revenue
- Customer-success team pages on account growth
- Venture-capital blogs comparing SaaS benchmarks
- Usage-based infrastructure and API companies tracking land-and-expand
- Finance courses on subscription-business valuation
Questions
What is a good NRR?
Bessemer's cloud benchmarks put net retention at about 105-145% for companies with 1-10 million of ARR (around 140% on average) and 105-125% at larger scale. Above 100% means the existing base grows without new customers.
And a good GRR?
Bessemer reports gross retention fairly steady at 85-90% across company sizes, lower (around 70-80%) for products selling to small businesses. GRR above 90% is generally strong.
Why is GRR capped at 100%?
Because it ignores expansion. The best a cohort can do on gross retention is lose nothing, which is 100%. Any figure above that means expansion revenue slipped into the calculation.
Monthly or annual NRR?
Most public companies report annual NRR: revenue from customers a year ago today, divided by their revenue a year ago. A monthly NRR of 101% compounds to about 112.7% a year, assuming it holds every month.
How does usage-based pricing affect NRR?
Consumption pricing - per API call, gigabyte or compute hour - lets existing customers spend more automatically as their workloads grow, which is why infrastructure and data-warehouse vendors have reported NRR above 130%. It also drops quickly when customers optimise usage in a downturn.
Does revenue from a customer who churned and came back count?
If they were in the starting cohort, their returning revenue can count as expansion over the full period. Revenue from brand-new customers never counts, however large.
Sources
- Scaling to $100 Million - Bessemer Venture Partners (Atlas) . Defines gross retention (nets out churn and downgrades, no expansion) and net retention (adds upsell and expansion), with benchmark ranges by ARR scale. Checked 2026-10-01.
- SaaS Metrics 2.0 - Detailed Definitions - David Skok, For Entrepreneurs (Matrix Partners) . Net MRR churn = (churned MRR - expansion MRR) / beginning MRR, the complement of NRR. Checked 2026-10-01.
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A2Z Tools Net Revenue Retention Calculator https://a2z.tools/embed/net-revenue-retention-calculator
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