Quick answer
How do you calculate Net Revenue Retention?
Use NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR × 100. Enter the matching values above to calculate the result instantly.
What it measures
Understanding Net Revenue Retention
Calculate recurring revenue retained after expansion, contraction, and churn. CalcPilot applies the formula NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR × 100 to the values you enter and updates the result in your browser. NRR above 100% means expansion from the starting cohort exceeded revenue lost to downgrades and churn. Before comparing results, define each input consistently: use the same reporting period, currency, customer definition, and accounting scope. Small definition changes can move the answer more than the arithmetic itself. The result measures recurring revenue retained from the opening customer base without including new-logo revenue. Treat the result as a decision aid rather than a guarantee. Run a base case, a conservative case, and an ambitious case to see which assumption has the greatest effect. Pair this metric with the adjacent measures linked below so an apparently strong number does not hide weak cash flow, margin, retention, or execution quality. Track NRR by cohort, segment, geography, and product to reveal where expansion and retention differ. The most useful analysis records the source and date of every input, then repeats the calculation on a regular schedule. Currency changes, usage revenue, migrations, acquisitions, and inconsistent MRR normalization can distort the metric.
The math
Net Revenue Retention formula
Reserved ad space
Worked example
Example calculation
- Calculation
- ($500,000 + $45,000 − $12,000 − $28,000) ÷ $500,000 × 100
- Result
- 101% NRR
Step by step
How to use this calculator
- 1Enter starting mrr, expansion mrr, contraction mrr, churned mrr.
- 2Keep every input on the same time period and measurement basis.
- 3Review the result, then change one assumption at a time to test scenarios.
Decision support
When this calculator is useful
- Retention reporting
- Expansion analysis
- SaaS forecasting
Common questions
Frequently asked questions
What does the Net Revenue Retention result mean?
The result measures recurring revenue retained from the opening customer base without including new-logo revenue.
Which inputs should I use for Net Revenue Retention?
Use starting mrr, expansion mrr, contraction mrr, churned mrr, measured from the same source and period. Include only values that match the definitions shown beside each field.
How should I use this Net Revenue Retention calculation?
Track NRR by cohort, segment, geography, and product to reveal where expansion and retention differ.
What are the limitations of the Net Revenue Retention formula?
Currency changes, usage revenue, migrations, acquisitions, and inconsistent MRR normalization can distort the metric.
Calculation reviewed: 2026-06-18. CalcPilot uses the formula shown above and tests representative values during the production build. See our methodology and correction policy.
Browse by topic
Calculator categories
Reserved ad space
Keep exploring
Related calculators
MRR Calculator
Calculate normalized monthly recurring revenue from customers and average monthly revenue.
Calculate nowARR Calculator
Annualize monthly recurring revenue for a subscription business.
Calculate nowSaaS Churn Rate Calculator
Calculate the percentage of starting SaaS customers lost during a period.
Calculate nowSaaS Rule of 40 Calculator
Combine recurring-revenue growth and profit margin into the SaaS Rule of 40 score.
Calculate nowCustomer Lifetime Value Calculator
Estimate customer lifetime revenue from order value, purchase frequency, and lifespan.
Calculate now