SaaS Net Revenue Retention (NRR) Calculator & Guide

Net Revenue Retention (NRR), also known as Net Dollar Retention (NDR), is a crucial metric for SaaS and subscription businesses. It measures the revenue growth you generate from your existing customer base over a specific period, factoring in upsells, downgrades, and churn.

An NRR above 100% is a key indicator of a healthy, “net negative churn” business, meaning revenue from existing customers is growing faster than it’s shrinking.

How to Calculate NRR

The formula for Net Revenue Retention is straightforward :

• Starting MRR: Your total Monthly Recurring Revenue at the beginning of the period.
• Expansion MRR: Additional revenue from existing customers (e.g., upgrades, cross-sells).
• Churned MRR: Revenue lost from customers who canceled their subscriptions.
• Contraction MRR: Revenue lost from customers who downgraded their plans.

What Is a Good NRR?

• 120%+: Excellent. This is a best-in-class NRR, signaling that your business has strong product-market fit and a highly effective expansion strategy.
• 100% – 119%: Good. This indicates solid growth from your customer base and a healthy business model.
• 80% – 99%: Needs Improvement. Your business is likely losing more revenue from churn and downgrades than it’s gaining from expansions. This is a major warning sign.
• Below 80%: Warning. Your revenue is shrinking significantly from your existing customer base, suggesting a fundamental issue with product value or customer retention.

The Interactive NRR Calculator

Use our free, interactive tool below to instantly calculate your Net Revenue Retention rate. Adjust the sliders or enter your numbers to see how each metric impacts your final NRR and revenue breakdown.

Why NRR Is Your Most Important SaaS Metric

• It Proves Product-Market Fit: A high NRR shows that customers love your product so much they’re willing to pay more for it over time.
• Predictable Growth: With an NRR above 100%, you can confidently project future revenue growth even without acquiring a single new customer.
• Actionable Insights: By breaking down the components, NRR helps you identify if you have a problem with customer churn, a lack of expansion opportunities, or both.
• Investor Confidence: NRR is one of the first metrics venture capitalists and private equity firms look at. A strong NRR is a powerful signal of a defensible and scalable business.