KamoCRM

NRR (Net Revenue Retention)

The percentage of revenue retained from existing customers over a year, including expansion.

Customer Success

Definition

Net Revenue Retention measures how much revenue from an existing cohort of customers grew or shrank over 12 months, including expansion, contraction, and churn. NRR above 100% means expansion exceeded losses — the holy grail of SaaS.

Key points

  • Formula: (Starting ARR + Expansion − Contraction − Churn) / Starting ARR × 100
  • >100% NRR = net negative churn; customers grow faster than they shrink
  • Best-in-class: 120%+ NRR
  • NRR below 90% is typically a structural business model problem
Example

Start Jan 2025 with $1M ARR from 100 customers. 12 months later: same cohort now worth $1.2M (expansion $300k, contraction $50k, churn $50k). NRR = 1.2 / 1.0 = 120%.

Related terms

GRR (Gross Revenue Retention)ARR (Annual Recurring Revenue)Churn RateExpansion Revenue

Stop stitching tools to track this

KamoCRM unifies CRM, communications, and operations — the metrics this term describes become live dashboards in your workspace.

Start freeBrowse glossary
NRR (Net Revenue Retention): Formula & Benchmarks | KamoCRM | KamoCRM