#897 · Startup Tool

Net Revenue Retention Calculator

Calculate Net Revenue Retention for SaaS by combining starting MRR, expansion, downgrades, and churned revenue. This NRR tool shows whether existing customers are growing enough to offset revenue loss.

Calculator

Existing customer revenue movement
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How to use this calculator

Enter beginning MRR from existing customers only, then add expansion revenue and subtract downgrades and churned MRR.

Do not include revenue from brand-new customers when calculating NRR.

What the result means

NRR measures how much revenue is retained and expanded from an existing customer base. Above 100% means expansion offsets losses; above 120% is often considered very strong for SaaS.

NRR = (Beginning MRR + Expansion MRR − Downgrade MRR − Churned MRR) ÷ Beginning MRR × 100.

NRR is one of the most important SaaS retention and expansion metrics because it shows growth quality inside the existing customer base.

Example calculation

With $100,000 beginning MRR, $18,000 expansion, $5,000 downgrades, and $6,000 churn, NRR is 107%.

Tips for better results

  • Separate expansion, downgrade, and churn sources.
  • Improve onboarding and account expansion to increase NRR.
  • Track NRR by segment because enterprise and SMB behavior can differ sharply.

FAQ

How do I calculate net revenue retention for SaaS?

Add expansion revenue to beginning MRR, subtract downgrades and churned revenue, then divide by beginning MRR.

What is a good net revenue retention rate for SaaS?

Above 100% means existing customer revenue is growing after losses. Above 120% is often viewed as very strong in B2B SaaS.

Does NRR include new customer revenue?

No. NRR should only include revenue movement from the existing customer base, not brand-new customers.

How do upgrades affect net revenue retention?

Upgrades increase expansion revenue, which raises NRR and can offset downgrades or churn.

Why is my SaaS NRR below 100 percent?

NRR falls below 100% when expansion revenue is not enough to offset downgrades and churned recurring revenue.

NRR metrics

MetricUse
NRRRevenue retained plus expanded from existing customers.
ExpansionUpgrade or seat growth revenue.
ContractionDowngrades and churned revenue.
Growth qualityWhether existing accounts expand after losses.

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