Definition
What is Net Revenue Retention (NRR)?
Revenue kept and expanded from existing customers, after churn and downgrades.
NRR measures how recurring revenue from a customer cohort changes over time, combining churn, downgrades, and expansion. Above 100% means the existing base grows by itself even with zero new sales. It is the cleanest signal of whether a subscription product retains and compounds value, and it is why expansion revenue can mask dangerous logo churn if tracked alone.
Formula
NRR (%) = (Starting MRR + Expansion − Churn − Downgrades) ÷ Starting MRR × 100Example
A cohort starts at $50,000 MRR, adds $6,000 in expansion, loses $4,000 to churn: NRR = ($50,000 + $6,000 − $4,000) ÷ $50,000 = 104%.