Source: https://www.revvly.ai/glossary/nrr

[Glossary](https://www.revvly.ai/glossary)

# 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

- [Docs: reference metrics](https://www.revvly.ai/docs/reference/metrics)

## Further reading

- [Net revenue retention is the only number that compounds.](https://www.revvly.ai/blog/nrr-compounds)
- [Net dollar retention vs. net revenue retention: are they the same thing?](https://www.revvly.ai/blog/net-dollar-retention-vs-net-revenue-retention)
- [Cohort retention analysis: a practical framework for subscription businesses](https://www.revvly.ai/blog/cohort-retention-analysis-framework)

## Related terms

- [Gross revenue retention (GRR)](https://www.revvly.ai/glossary/grr)
- [Expansion MRR](https://www.revvly.ai/glossary/expansion-mrr)
- [Contraction MRR](https://www.revvly.ai/glossary/contraction-mrr)
- [Revenue churn](https://www.revvly.ai/glossary/revenue-churn)

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