Net Revenue Retention
The percentage of recurring revenue retained from existing customers including expansions, contractions, and churn.
In Depth
Net Revenue Retention (NRR), also called Net Dollar Retention (NDR), measures the percentage of revenue retained from existing customers over a given period, accounting for upgrades (expansion), downgrades (contraction), and cancellations (churn). It is calculated as: NRR = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR × 100. An NRR above 100% means the company is growing revenue from existing customers even without acquiring new ones. Top-performing SaaS companies achieve 120-140% NRR. NRR is one of the most important metrics for investors because it demonstrates product stickiness, upsell effectiveness, and long-term growth potential independent of new customer acquisition.
How AI for Database Helps
AI for Database calculates NRR from your subscription data with a simple question, tracking it over time and by customer segment.
Related Terms
MRR
Monthly Recurring Revenue—the predictable total revenue generated from all active subscriptions in a month.
Churn Rate
The percentage of customers or subscribers who stop using a product or service during a given time period.
SaaS Metrics
A set of key performance indicators specific to subscription-based software businesses.
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