SaaS metrics

What is NRR (Net Revenue Retention)?

NRR is the revenue retained from a cohort after cancellations, downgrades and expansions — it can exceed 100% when upgrades outpace churn.

NRR (Net Revenue Retention) measures how much revenue you still have from a customer cohort 12 months later, adding expansions and subtracting contractions and cancellations. NRR above 100% means the existing base grows on its own, even without new customers.

It is the most robust health metric of a mature SaaS because it exposes whether the product delivers growing value over time: 110% NRR is considered good; above 120%, excellent.

Formula

NRR = (MRR inicial + expansão − contração − churn) ÷ MRR inicial

Use it in practice

SaaS Simulator

Frequently asked questions

Can NRR exceed 100%?
Yes. When upgrades and expansions exceed churn and contractions, NRR goes above 100% and the base grows on its own.
What is the difference between NRR and GRR?
GRR ignores expansions and shows only how much initial revenue survived; NRR adds expansions and can exceed 100%.