Net Revenue Retention (NRR) Calculator

What is net revenue retention?

Net revenue retention (NRR) measures how much recurring revenue you keep from an existing customer cohort over a period, after accounting for expansion, contraction and churn — and excluding all new-customer revenue. An NRR of 110% means the customers you already had a year ago are worth 10% more today, even if you never signed another logo.

That is why investors treat NRR as the single strongest signal of product-market fit in B2B SaaS: it tells you whether the business compounds on its own. Above 100%, your installed base is a growth engine. Below 100%, you are refilling a leaky bucket with sales and marketing spend, and your MRR growth is more expensive than it looks.

The NRR formula, with a worked example

NRR = (Starting MRR + Expansion − Contraction − Churn) / Starting MRR

Say a cohort started the period at $100,000 MRR. During the period, upgrades and seat expansion added $12,000, downgrades removed $3,000, and cancelled accounts removed $5,000:

NRR = (100,000 + 12,000 − 3,000 − 5,000) / 100,000 = 104,000 / 100,000 = 104%

Expansion ($12,000) more than covered the $8,000 lost to contraction and churn, so the cohort grew 4% with zero new customers. Run the same inputs without expansion and you get gross revenue retention of 92% — the retention floor underneath that 104%.

What's a good net revenue retention rate?

Directionally, median B2B SaaS NRR runs around 100–110%, and best-in-class clears 120%. As a scoring guide: 120%+ is top quartile, 105–120% is healthy, 95–105% is around the median, and below 95% needs attention. It also shifts by stage — these are directional 2026 medians, not hard cutoffs:

Later-stage companies skew higher because they sell into enterprise, where multi-year contracts and seat expansion push NRR up. An SMB-heavy product at 102% can be perfectly healthy; an enterprise product at 102% is underperforming. See the full band tables on the benchmarks page.

Common NRR mistakes

Three errors show up constantly. First, sneaking new-customer revenue into the numerator — NRR is strictly a same-cohort metric, and including new logos inflates it into a vanity number. Second, mixing time windows: monthly and annual NRR are not interchangeable, and a 99% monthly NRR compounds to roughly 89% annually — measure the period you report. Third, letting a strong NRR mask weak gross retention. Heavy expansion from a few whale accounts can hold NRR above 100% while churn quietly erodes the base; always read NRR alongside GRR and logo churn before concluding retention is fine.

This calculator is free, requires no sign-up, and runs entirely in your browser — enter four MRR figures and get your NRR scored against stage benchmarks instantly.