Churn & retentionMetric 10 of 35

NRRNet Revenue Retention

What % of last year's revenue you still have, including expansion.

Measures the revenue retained from existing customers including upsells. If existing customers expand faster than they shrink and churn, NRR is above 100% — meaning revenue grows even with zero new sales.

Formula

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

Worked example

Start $100K, expansion $12K, contraction $2K, churn $4K → NRR = (100 + 12 − 2 − 4) ÷ 100 = 106%.

Benchmark

B2B SaaS, annualised

Best-in-class

> 120%

Healthy

100–120%

Leaking

< 90%

Why it matters

NRR above 100% is the most coveted metric in SaaS. It means your existing book is a growth engine — every new customer is a compounding asset. NRR is what gets companies acquired at 20× multiples and what gets companies acquired at 4×.

Common mistakes

Calculating on a single month's snapshot rather than year-over-year cohort comparison.
Including new logos in the numerator (NRR is about existing customers only).
Reporting NRR without GRR — they tell different stories.

Tracked in FlowMRR

Retention → NRR/GRR trend card, computed from real subscription history, not an estimate.

Track NRR in FlowMRR