A metric that measures the percentage of recurring revenue retained from existing customers over a period, including expansion, contraction, and churn.
Also known as:
Net Revenue Retention, Net Dollar Retention, NDR
NRR is calculated by taking revenue from a cohort of existing customers at the start of a period, adding expansion revenue (upsells, cross-sells, seat additions), subtracting contraction (downgrades), and subtracting churn — then dividing by the starting revenue.
An NRR above 100% means the existing customer base is growing despite any churn. NRR above 110% is considered strong for B2B SaaS and signals that expansion motions are working. NRR below 100% means the business is shrinking its existing revenue base even before accounting for new business.
For investors and leadership, NRR is one of the most reliable indicators of product-market fit and commercial health.
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