Calculate your Net Retention Rate (NRR) to understand how your business generates revenue from its existing customer base. This metric is crucial for SaaS and subscription-based businesses to measure growth, churn, and expansion health.
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Recurring revenue at the start of the period.
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Revenue from upsells and cross-sells to existing customers.
$
Revenue lost due to downgrades (excluding churn).
$
Revenue lost from customers who cancelled completely.
Please enter a valid Starting ARR greater than 0.
Ending Revenue:$0.00
Net Retention Rate:0%
What is Net Retention Rate?
Net Retention Rate (NRR), sometimes referred to as Net Dollar Retention (NDR), is a critical metric for SaaS and subscription companies. It measures the percentage of recurring revenue retained from your existing customer base over a specific time period (usually monthly or annually), accounting for upgrades (expansion), downgrades (contraction), and cancellations (churn).
Unlike Gross Retention Rate (GRR), which can never exceed 100%, NRR can exceed 100%. An NRR above 100% means that growth from your existing customers (through upsells and cross-sells) is outpacing the revenue lost from churn and downgrades.
The NRR Formula
The calculation is based on the cohort of customers present at the beginning of the period.
Starting ARR: Annual Recurring Revenue at the beginning of the period.
Expansion ARR: Revenue gained from upsells and cross-sells within the period.
Contraction ARR: Revenue lost from customers who downgraded their subscription.
Churned ARR: Revenue lost from customers who cancelled entirely.
Why is NRR Important?
NRR is often considered the "gold standard" of customer success metrics because it indicates the health of your product's value proposition.
Compound Growth: High NRR means you can grow even without acquiring new customers.
Valuation Multiplier: Investors often value SaaS companies with >120% NRR significantly higher than those with <100% NRR.
Customer Satisfaction: Expansion revenue usually correlates with high customer satisfaction and product stickiness.
Benchmarking Your NRR
What is a "good" NRR score? It varies by industry and Average Revenue Per User (ARPU), but general benchmarks for SaaS companies are:
Excellent: > 120% (Best-in-class Public SaaS companies)
Good: 100% – 110% (Healthy growth from existing base)
Fair: 90% – 100% (Churn is slightly outpacing expansion)
Poor: < 90% (Significant churn issues that need addressing)
function calculateNRR() {
// Get values from inputs
var startArr = parseFloat(document.getElementById('starting_arr').value);
var expandArr = parseFloat(document.getElementById('expansion_arr').value);
var contractArr = parseFloat(document.getElementById('contraction_arr').value);
var churnArr = parseFloat(document.getElementById('churned_arr').value);
var resultArea = document.getElementById('result-area');
var errorMsg = document.getElementById('error-message');
// Reset display
errorMsg.style.display = 'none';
resultArea.style.display = 'none';
// Validation: Starting ARR must be a number > 0
if (isNaN(startArr) || startArr = 120) {
benchmarkHTML = "🚀 Excellent! Your expansion revenue significantly outweighs churn.";
} else if (nrrPercent >= 100) {
benchmarkHTML = "✅ Good. You are retaining value and growing from your base.";
} else if (nrrPercent >= 90) {
benchmarkHTML = "⚠️ Fair. You are losing slightly more value than you are gaining.";
} else {
benchmarkHTML = "🛑 Attention Needed. Churn and contraction are eroding your revenue base.";
}
// Format and Display Results
document.getElementById('ending-rev-display').innerText = '$' + endingArr.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
var nrrDisplay = document.getElementById('nrr-display');
nrrDisplay.innerText = nrrPercent.toFixed(2) + '%';
// Color coding the NRR result
if(nrrPercent >= 100) {
nrrDisplay.style.color = "#27ae60"; // Green
} else {
nrrDisplay.style.color = "#c0392b"; // Red
}
document.getElementById('benchmark-text').innerHTML = benchmarkHTML;
// Show result box
resultArea.style.display = 'block';
}