SaaS Gross Revenue Retention (GRR)

Written by Priya Nair, Senior Content Editor Reviewed by Vikram Sen, Technical Reviewer Last updated: June 1, 2026 Last verified: June 1, 2026 · Methodology · Accuracy policy

A SaaS retention KPI capped at 100% (no expansion credit). Distinct from NRR and from HR retention rate.

GRR % = (start − contraction − churned) ÷ start × 100.

Tip: Keep “Start MRR” and “Contraction MRR” on the same basis (period, units, and population) before calculating SaaS Gross Revenue Retention (GRR).

Cluster: SaaS hub · Finance loan-to-value · HR retention rate · Code churn · Percentage guide

Gross revenue retention (GRR) measures retained revenue from the starting cohort excluding expansion.

Enter start MRR, contraction, and churned MRR for the same cohort and period.

Start MRR

Starting cohort MRR

Contraction MRR

Downgrade / contraction MRR

Churned MRR

Fully churned MRR

GRR

Understanding SaaS Gross Revenue Retention (GRR)

How we calculate. GRR % = (start − contraction − churned) ÷ start × 100. The form uses the same arithmetic as the worked examples on this page. See our methodology and accuracy policy.

Real-world scenario: A typical SaaS Gross Revenue Retention (GRR) case uses start mrr 100000 and contraction mrr 5000. Enter the same figures below to reproduce the worked path.

What is SaaS Gross Revenue Retention (GRR)?

A SaaS retention KPI capped at 100% (no expansion credit). Distinct from NRR and from HR retention rate.

No expansion in the numerator
Same cohort as NRR when comparing
GRR ≤ 100% typically

The Formula

SaaS Gross Revenue Retention

GRR % = (Start MRR − Contraction − Churned MRR) ÷ Start MRR × 100

Worked Example

Scenario: Start MRR $100,000; contraction $5,000; churned $8,000.

Step 1: 100000 − 5000 − 8000 = 87000

Step 2: 87000 ÷ 100000 = 0.87

Step 3: × 100 = 87%

Answer: GRR is 87%.

Common Use Cases

Retention quality: without upsells
Board packs: GRR vs NRR
CS goals: protect base revenue

Pro Tips

Compare GRR and NRR together
Freeze contraction vs churn rules
Don’t use insurance retention ratio

Limitations: SaaS Gross Revenue Retention (GRR) results are educational SaaS / subscription planning aids—not accounting, tax, or investment advice. Confirm definitions with your billing system and board reporting standards.

FAQ

Can GRR exceed 100%?

Not under this educational formula—expansion is excluded. Use NRR when expansion can push retention above 100%.

What if start MRR is 0?

GRR is undefined—enter positive start MRR.

Authoritative References

For SaaS metrics and subscription performance concepts, consult:

SaaStr — SaaS growth and metrics context
For Entrepreneurs — SaaS metrics explainers
Bessemer Venture Partners — cloud / SaaS industry research