Net Revenue Retention
Net revenue retention measures how much recurring revenue is retained from existing customers after churn, contraction, expansion, and price changes.
Primary keyword
net revenue retention
Plain-English definition
NRR answers whether the customers you already have are worth more, the same, or less than they were at the start of the period.
Why it matters
Strong NRR means growth can compound from the existing customer base instead of relying only on new logo acquisition.
Formula
NRR = current-period recurring revenue from the starting customer cohort / starting recurring revenue for that same cohort x 100.
Example
A SaaS company starts the year with $1,000,000 in ARR from existing customers. Those same customers produce $1,120,000 after churn, contraction, and expansion, so NRR is 112%.
Common mistakes
Teams often mix new customers into the cohort, use inconsistent time periods, or hide churn behind expansion without looking at GRR.
TurnkeyGTM angle
TurnkeyGTM is designed to help GTM teams connect customer evidence, objections, and expansion signals back to accounts so retention discussions are grounded in real buyer language.