Churn & retentionMetric 10 of 35

NRRNet Revenue Retention

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

Put this metric to work: explore FlowMRR's MRR retention analytics to track revenue movements, retention and forecasts from your own account.

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%.

Illustrative comparisons

B2B SaaS, annualised

These unsourced ranges are illustrative scenarios, not measured industry benchmarks, percentiles or recommended targets. Their qualitative labels are editorial interpretations. Compare your own cohorts using the same segment, period, currency and measurement basis.

Higher retention
> 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.
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