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SaaS

What is Net Revenue Retention?

Revenue retained from existing customers including expansion.

How to calculate it

Calculate Net Revenue Retention as: (Starting MRR + Expansion − Contraction − Churn) / Starting MRR × 100. Pull the inputs from your connected data and track the trend over time in your dashboard.

Examples

Example 1

Start at $100k MRR; +$15k expansion, -$3k contraction, -$5k churn -> $107k -> 107% NRR (growth without new logos).

Example 2

Starting at $100k MRR with $18k expansion, $4k contraction and $4k churn -> $110k -> 110% NRR, growth driven entirely by the existing base.

Why it matters

Net revenue retention (NRR) measures the revenue retained from existing customers including expansion, and a figure above 100% means the base grows even without new logos. It is one of the strongest signals of product value and a major driver of SaaS valuation multiples. Mixing new-logo revenue into the calculation inflates it and defeats its purpose.

Benchmark context

100-120% is good and above 120% is excellent; best-in-class enterprise SaaS often exceeds 130%. SMB-focused products typically run lower.

Common pitfalls

Mixing new-logo revenue into the calculation.

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