SaaS

Net Revenue Retention Calculator

Calculate how recurring revenue from an existing cohort changes after expansion, contraction, and churn.

Last reviewed: April 30, 2026Free toolMethodology

Net Revenue Retention Calculator

These fields start with sample inputs. Keep them or replace them, then run the tool to show a fresh result.

Number fields accept plain values and common formatted input such as 250000, 250,000, or 1,234.56.

Result

Calculating the sample result.

Why it matters

NRR is a core SaaS health metric because it shows whether the installed base is growing or shrinking before new logo sales are counted.

When to use

  • Board reporting
  • Segmenting revenue quality by cohort
  • Evaluating the impact of expansion revenue

Inputs & Outputs

Inputs

  • Starting MRR is the recurring revenue from the opening cohort.
  • Expansion MRR is the additional recurring revenue from that same cohort.
  • Contraction MRR and churned MRR capture losses from downsells and full churn.

Outputs

  • NRR shows the percentage of starting recurring revenue retained after all changes in the cohort.
  • Net cohort change shows the absolute dollar movement.

NRR formula

Add expansion to starting MRR, subtract contraction and churn, then divide by starting MRR and convert to a percentage.

NRR = (start MRR + expansion - contraction - churn) / start MRR

Worked example

1

Cohort quality review

A cohort starts at 500,000 in MRR, adds 70,000 in expansion, loses 20,000 to contraction, and 30,000 to churn.

Inputs

  • Start MRR: 500,000
  • Expansion: 70,000
  • Contraction: 20,000
  • Churn: 30,000

Steps

  • Ending cohort MRR = 500,000 + 70,000 - 20,000 - 30,000 = 520,000
  • NRR = 520,000 / 500,000 = 104%

Result

  • Net revenue retention is 104%.

Edge cases & caveats

  • NRR says nothing about new logo acquisition efficiency.
  • Mixing billing cadences or measurement windows can distort the result.

Frequently Asked Questions

Can NRR exceed 100%?

Yes. Expansion can outweigh contraction and churn, which pushes NRR above 100%.

Why is NRR so important in SaaS?

Because it isolates the health of the existing customer base and reveals whether product value is compounding inside the cohort.

Keep going

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