Retention baseline
A cohort begins at 500,000 in MRR, loses 20,000 to contraction and 30,000 to churn.
Inputs
- Start MRR: 500,000
- Contraction: 20,000
- Churn: 30,000
Steps
- Retained gross revenue = 500,000 - 20,000 - 30,000 = 450,000
- GRR = 450,000 / 500,000 = 90%
Result
- Gross revenue retention is 90%.