Net Revenue Retention (NRR)

Revenue retained from existing customers, including expansion and churn. The single best predictor of sustainable growth.

NRR = ((Starting MRR + Expansion - Contraction - Churn) / Starting MRR) × 100%

What it measures

How much revenue you retain and grow from your existing customer base, independent of new sales. NRR above 100% means existing customers generate more revenue over time, even without acquiring anyone new. Median private SaaS NRR dropped to 101% in 2024 (down from 105% in 2021)—the bar is getting harder to clear.

Benchmarks

Below 100%: Losing money from existing customers—urgent problem
100-110%: Solid retention with modest expansion
110-120%: Strong expansion, good product-market fit
120%+: Exceptional (usage-based or platform companies)

What to watch

Above 100%: Companies with NRR above 100% grow at twice the rate of those below. Best-in-class SaaS companies hit 120%+ through usage-based pricing or strong upsell motions.
Below 100%: No amount of acquisition can outrun a leaky bucket at scale—prioritize reducing churn and contraction before investing in growth.

In practice

A B2B SaaS company had 95% NRR, meaning they lost 5% of revenue from existing customers each year. After analyzing cohorts, they found mid-market accounts churned at 2× the rate of enterprise. They rebuilt onboarding for mid-market and added a customer success tier, raising NRR to 108%. The same sales team now generated faster growth because each new customer compounded rather than leaked.