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Markets & Metrics

Net Revenue Retention

Revenue kept and grown from existing customers, yearly

What it is

Net Revenue Retention (NRR) measures how much recurring revenue you keep, and grow, from your EXISTING customers over a year, after accounting for upgrades, downgrades, and churn, but ignoring brand-new customers. An NRR of 120% means last year's customers are now paying 20% more in total, even before adding anyone new. Below 100% means the existing base is shrinking.

Why it matters

NRR above 100% means a company grows even if it stops acquiring customers, the holy grail for SaaS investors. It is one of the strongest predictors of durable, efficient growth.

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