Gross Revenue Retention (GRR)

How GRR is calculated

GRR = (Starting MRR − Churned MRR − Contraction MRR) / Starting MRR x 100. Unlike Net Revenue Retention (NRR), GRR does not include expansion revenue. It measures only what is kept from the existing base — the true floor of retention performance. GRR can never exceed 100%, because it does not include growth from the same customer base. A GRR of 95% means 5% of the existing revenue base is being lost to cancellations and downgrades each period, before any new revenue is counted.

GRR vs NRR

GRR and NRR measure related but distinct things. NRR includes expansion, which means a strong upsell motion can mask a weak retention foundation. GRR strips expansion out to reveal the underlying churn and contraction problem. A business with an NRR of 110% but a GRR of 85% is churning 15% of its base and compensating with aggressive upselling — a fragile position. A business with a GRR of 95% and an NRR of 110% is retaining well and expanding on a solid base — a durable position. Both metrics are needed to tell the full story.

What good looks like

In B2B SaaS, a GRR above 90% is considered healthy for most mid-market products. Enterprise-focused businesses with longer contracts and higher switching costs can achieve GRR above 95%. Below 85%, the business is churning fast enough that even a strong new business motion struggles to produce net growth. GRR below 80% is typically a signal of a product-market fit problem or severe onboarding failure.

How Closing Foundry uses it

GRR is part of the revenue health diagnostic at the start of every engagement. When NRR looks healthy but the team is still struggling to grow, GRR typically reveals why: expansion revenue is masking a churn problem that will compound as the customer base grows. In commercial architecture work, improving GRR is a prerequisite for scaling new business — adding acquisition headcount to a business with a GRR below 85% typically widens the revenue gap rather than closing it. The commercial spine we build in the Closing OS sets GRR targets before scaling new business motions.