Net Revenue Retention, also called Net Dollar Retention (NDR), is one of the most important health indicators for a SaaS business. It answers the question: if you acquired zero new customers, would your revenue grow or shrink? An NRR above 100% means existing customers are generating more revenue over time through upsells and expansions than is lost to churn and downgrades. Top-performing SaaS companies achieve NRR of 120% or higher. NRR above 100% creates a powerful compounding effect where the existing customer base becomes a growth engine independent of new customer acquisition.
Net Revenue Retention (NRR)
Net Revenue Retention (NRR) - NRR shows how much revenue from existing customers you retain and grow over time, factoring in upgrades, downgrades, and cancellations.
What is Net Revenue Retention (NRR)?
Examples
- 1
Starting MRR of $100K, with $15K expansion, $3K contraction, and $5K churn gives NRR of 107%.
- 2
An NRR of 120% means that last year's cohort of customers now generates 20% more revenue.
- 3
A company with 95% NRR needs to acquire 5% more new revenue just to maintain flat growth.
Frequently Asked Questions about Net Revenue Retention (NRR)
Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing customers over a period, including expansions, contractions, and churn.
Net Revenue Retention, also called Net Dollar Retention (NDR), is one of the most important health indicators for a SaaS business. It answers the question: if you acquired zero new customers, would your revenue grow or shrink? An NRR above 100% means existing customers are generating more revenue over time through upsells and expansions than is lost to churn and downgrades.
Starting MRR of $100K, with $15K expansion, $3K contraction, and $5K churn gives NRR of 107%.
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