Net Revenue Retention (NRR) Calculator — Subscription Businesses
Net and gross revenue retention of a group of customers from their starting recurring revenue, the expansion, the downgrades and the cancellations, plus the NRR over a year.
Results
What this tool does
NRR asks what happened to the revenue you already had: it adds upgrades and subtracts downgrades and cancellations, and leaves out new customers entirely. Above 100 % the existing base grows by itself even if you win nobody new; below, you must keep filling a leaking bucket. Gross revenue retention is the same without the expansion, so it can never exceed 100 % and shows how much is simply lost. If your period is a month or a quarter, the last result compounds it to a year, which shows why small monthly leaks add up.
Formula
NRR = (starting revenue + expansion − contraction − churn) ÷ starting revenue · GRR = (start − contraction − churn) ÷ start
Variables
| Symbol | Meaning | Unit |
|---|---|---|
m0 | Recurring revenue at the start from those customers | — |
ex | Extra revenue from upgrades and add-ons | — |
ct | Revenue lost to downgrades | — |
ch | Revenue lost to cancellations | — |
pm | Length of the period in months | — |
N | Net revenue retention (NRR) | % |
G | Gross revenue retention (GRR) | % |
RC | Revenue churn (cancellations + downgrades) | % |
NA | NRR over a year at this pace | % |
Worked example
- Recurring revenue at the start from those customers100,000
- Extra revenue from upgrades and add-ons8000
- Revenue lost to downgrades2000
- Revenue lost to cancellations5000
- Length of the period in months12
- Net revenue retention (NRR)101.0 %
- Gross revenue retention (GRR)93.0 %
- Revenue churn (cancellations + downgrades)7.00 %
- NRR over a year at this pace101.0 %
Limitations
- The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.