Counts new customers?

No \u2014 NRR is for existing customers only.

Per quarter or annual?

Annual most common \u2014 but quarterly tracks trends.

Customers shrinking. Investigate: product issues? Pricing? Competition?

Should I report GRR too?

Yes \u2014 both. Investors care about both metrics.

Affected by discounting?

Yes \u2014 discounts reduce expansion. Track discount rate alongside.

Net Revenue Retention (NRR) Cohort

NRR = (Starting ARR + Expansion - Churn - Contraction) / Starting ARR. >100% = expansion-driven. >120% = best-in-class.

Cohort Starting ARR ($)

Expansion ARR ($)

Contraction ARR ($)

Churned ARR ($)

Net Revenue Retention

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Gross Revenue Retention

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Verdict

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Starting ARR	—
Expansion	—
Contraction	—
Churn	—
Ending ARR	—
NRR %	—
GRR %	—

Net Revenue Retention (NRR) measures whether your existing customers spend more or less over time. NRR above 100% means expansion exceeds churn — growth without new customer acquisition. Top SaaS achieves 120%+ NRR.

NRR vs GRR

NRR includes expansion (upsells, cross-sells) — measures account growth. GRR excludes expansion — measures pure retention. Both important: NRR signals growth potential, GRR signals product stickiness.

Benchmark by Category

SaaS: 100-110% average, 120%+ excellent, 130%+ world-class. Enterprise: usually higher (120-150%). SMB: lower (95-110%). Consumer SaaS: typically <100%. Snowflake reported 158% NRR at peak.

Cohort Analysis

Calculate by cohort (signup year/quarter) to identify expansion patterns. New customers may show low Year 1 NRR but high Year 2+. Use to inform expansion playbook.

Last updated May 2026. Sources: OpenView NRR Benchmark.