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Net Revenue Retention Calculator

Calculate recurring revenue retained after expansion, contraction, and churn.

Reviewed 2026-06-18 · Formula and example verified by the CalcPilot Editorial Team

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Net revenue retention

101%

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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

NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR × 100

Worked example

Example calculation

Starting MRR is $500,000 with $45,000 expansion, $12,000 contraction, and $28,000 churn.
Calculation
($500,000 + $45,000 − $12,000 − $28,000) ÷ $500,000 × 100
Result
101% NRR

Step by step

How to use this calculator

  1. 1Enter starting mrr, expansion mrr, contraction mrr, churned mrr.
  2. 2Keep every input on the same time period and measurement basis.
  3. 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.

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