Net Revenue Retention (NRR) Rate Calculator

How to calculate NRR rate calculator?

NRR measures the percentage of revenue retained from existing customers after accounting for expansions, contractions, and churn during a period.

Formula: NRR (%) = ((Starting MRR + Expansion MRR - Contraction MRR - Churn MRR) / Starting MRR) × 100

Using the NRR rate calculator calculator: an example

Below are example values to illustrate the calculation.

Step-by-step calculation:

• Starting MRR = $10,000
• Add expansions and subtract contractions and churn: $10,000 + $1,200 - $400 - $300 = $10,500
• Divide by starting MRR and convert to percentage: ($10,500 / $10,000) × 100
• Result: NRR = 105%

Frequently Asked Questions

What is a good NRR rate?

Generally, an NRR above 100% indicates revenue growth from existing customers; 100% is stable and below 100% means net revenue loss from the existing base.

Does NRR include revenue from new customers?

No. NRR only reflects changes in revenue from existing customers, including expansions, contractions, and churn, and excludes new-customer revenue.

How often should I calculate NRR?

Calculate NRR monthly for operational monitoring and review it quarterly for strategic planning and trend analysis.