SaaS Net Revenue Retention (NRR)

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 revenue retention KPI that can exceed 100% with expansion. Distinct from gross revenue retention (no expansion) and from HR retention rate.

NRR % = (start + expansion − contraction − churned) ÷ start × 100.

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

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

Net revenue retention (NRR) measures retained and expanded revenue from the starting cohort, including expansion, contraction, and churn.

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

Start MRR

Starting cohort MRR

Expansion MRR

Expansion / upsell MRR

Contraction MRR

Downgrade / contraction MRR

Churned MRR

Fully churned MRR

NRR

Understanding SaaS Net Revenue Retention (NRR)

How we calculate. NRR % = (start + expansion − 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 Net Revenue Retention (NRR) case uses start mrr 100000 and expansion mrr 15000. Enter the same figures below to reproduce the worked path.

What is SaaS Net Revenue Retention (NRR)?

A SaaS revenue retention KPI that can exceed 100% with expansion. Distinct from gross revenue retention (no expansion) and from HR retention rate.

Start MRR = cohort beginning revenue
Expansion = upsell / seat expansion MRR
Contraction / churned = downgrades and lost MRR

The Formula

SaaS Net Revenue Retention

NRR % = (Start MRR + Expansion − Contraction − Churned MRR) ÷ Start MRR × 100

Worked Example

Scenario: Start MRR $100,000; expansion $15,000; contraction $5,000; churned $8,000.

Step 1: 100000 + 15000 − 5000 − 8000 = 102000

Step 2: 102000 ÷ 100000 = 1.02

Step 3: × 100 = 102%

Answer: NRR is 102%.

Common Use Cases

Board packs: NRR vs target
CS + sales: expansion offset churn
Cohort health: net retention

Pro Tips

Freeze cohort vs total-book definitions
Don’t use HR retention rate
Pair with GRR

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

FAQ

Same as GRR?

No. GRR excludes expansion. NRR includes expansion and can exceed 100%.

What if start MRR is 0?

NRR 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