Net revenue retention (NRR)
Also: NRR, net dollar retention, NDR
Net revenue retention measures how much recurring revenue an existing customer base keeps and grows over a period, counting expansion and subtracting contraction and churn. Revenue from customers acquired during the period is excluded. An NRR above 100 percent means existing customers are growing faster than they leave.
Formula
NRR = (starting MRR + expansion + reactivation − contraction − churn) ÷ starting MRR
How to read it
NRR needs a clean starting cohort: only customers that were active at the start of the window count, so new logos cannot inflate it. Net dollar retention (NDR) is the same calculation under a different name in most usage. Pair NRR with gross revenue retention, which ignores expansion and shows how much revenue leaks out.
In Revvly
Further reading
- Net revenue retention is the only number that compounds.
- Net dollar retention vs. net revenue retention: are they the same thing?
- Cohort retention analysis: a practical framework for subscription businesses