.grr-calculator-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 25px;
border: 1px solid #e0e0e0;
border-radius: 8px;
background-color: #f9f9f9;
}
.grr-calculator-container h2 {
text-align: center;
color: #333;
margin-bottom: 25px;
}
.form-group {
margin-bottom: 20px;
}
.form-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #555;
}
.form-group input[type="number"] {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box;
font-size: 16px;
}
.form-text {
font-size: 0.9em;
color: #777;
margin-top: 5px;
}
.calculate-btn {
width: 100%;
padding: 15px;
background-color: #0056b3;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s;
}
.calculate-btn:hover {
background-color: #004494;
}
#grrResult {
margin-top: 30px;
padding: 20px;
background-color: #fff;
border: 1px solid #dcdcdc;
border-radius: 4px;
display: none;
}
.result-metric {
text-align: center;
margin-bottom: 20px;
}
.result-metric h3 {
margin: 0;
font-size: 3em;
color: #0056b3;
}
.result-metric p {
margin: 5px 0 0;
font-size: 1.1em;
color: #666;
}
.result-breakdown {
display: flex;
justify-content: space-around;
border-top: 1px solid #eee;
padding-top: 20px;
}
.breakdown-item {
text-align: center;
}
.breakdown-item span {
display: block;
font-size: 1.5em;
font-weight: bold;
color: #333;
}
.error-message {
color: #d9534f;
text-align: center;
margin-bottom: 15px;
display: none;
}
.article-container {
max-width: 800px;
margin: 40px auto;
line-height: 1.6;
color: #333;
}
.article-container h1 {
color: #2c3e50;
}
.article-container h2 {
color: #2c3e50;
margin-top: 30px;
}
.article-container ul {
padding-left: 20px;
}
.article-container li {
margin-bottom: 10px;
}
.formula-box {
background-color: #f0f4f8;
padding: 15px;
border-left: 4px solid #0056b3;
font-family: monospace;
margin: 20px 0;
}
function calculateGRR() {
var startingRevenueInput = document.getElementById('startingRevenue');
var churnedRevenueInput = document.getElementById('churnedRevenue');
var downgradeRevenueInput = document.getElementById('downgradeRevenue');
var resultDiv = document.getElementById('grrResult');
var errorDiv = document.getElementById('errorMessage');
var startingRevenue = parseFloat(startingRevenueInput.value);
var churnedRevenue = parseFloat(churnedRevenueInput.value);
var downgradeRevenue = parseFloat(downgradeRevenueInput.value);
// Reset error state
errorDiv.style.display = 'none';
resultDiv.style.display = 'none';
// Validation
if (isNaN(startingRevenue) || isNaN(churnedRevenue) || isNaN(downgradeRevenue) || startingRevenue <= 0 || churnedRevenue < 0 || downgradeRevenue 100) {
grrValue = 100;
}
// Formatting results
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
document.getElementById('grrPercentage').innerText = grrValue.toFixed(2) + '%';
document.getElementById('totalLostRevenue').innerText = formatter.format(totalLostRevenue);
document.getElementById('retainedRevenueEnd').innerText = formatter.format(retainedRevenue);
// Show results
resultDiv.style.display = 'block';
}
Understanding Gross Retention Rate (GRR) in SaaS
Gross Retention Rate (GRR) is a critical metric for subscription-based businesses and SaaS (Software as a Service) companies. It measures the percentage of recurring revenue retained from your existing customer base over a specific period, without taking into account any expansion revenue (such as upsells or cross-sells).
Unlike Net Retention Rate (NRR), which can exceed 100% if upsells outweigh churn, GRR has a maximum value of 100%. It is purely a measure of revenue "defense"—how well you are keeping the revenue you started with.
Why GRR Matters
GRR indicates the baseline health and stickiness of your product. A low GRR suggests a "leaky bucket" problem: regardless of how many new customers you acquire, you are losing a significant portion of your existing revenue base to cancellations and downgrades.
- Indicates Product Value: High retention means customers continue to find value in your core offering.
- Predicts Long-Term Viability: It is very difficult for a SaaS company to grow efficiently if it has to constantly replace a large percentage of its revenue due to high churn.
- Investor Focus: Investors scrutinize GRR to ensure the underlying business model is sound before looking at growth through upsells.
The Gross Retention Rate Formula
To calculate GRR, you need to look at your recurring revenue (either Monthly Recurring Revenue – MRR, or Annual Recurring Revenue – ARR) at the start of a period and subtract the revenue lost during that period.
GRR = ( (Starting Revenue – Churn Loss – Downgrade Loss) / Starting Revenue ) * 100
Where:
- Starting Revenue: The total MRR or ARR at the beginning of the month, quarter, or year.
- Churn Loss: The total value of recurring revenue lost from customers who completely cancelled their subscriptions during the period.
- Downgrade Loss (Contraction): The total value of recurring revenue lost due to existing customers moving to cheaper plans.
Example Calculation
Let's analyze a hypothetical B2B SaaS company for the month of January.
- Starting MRR (Jan 1st): $250,000
- Revenue lost to cancellations (Churn): $12,500
- Revenue lost to downgrades: $5,000
First, calculate the total revenue lost: $12,500 + $5,000 = $17,500.
Next, calculate the retained revenue from the starting base: $250,000 – $17,500 = $232,500.
Finally, apply the GRR formula:
($232,500 / $250,000) * 100 = 93.00% GRR
This means the company retained 93% of the revenue they started the month with. Even if they made $50,000 in upsells (expansion revenue), their GRR would remain 93%, because GRR ignores expansion.
What is a Good GRR benchmark?
Benchmarks vary by industry and target customer segment (SMB vs. Enterprise). However, general SaaS standards suggest:
- Excellent: 95%+ (Typical for Enterprise SaaS)
- Good: 90% – 95%
- Average: 85% – 90%
- Poor: Below 85% (Needs immediate attention to reduce churn)
Use the calculator above to track your own Gross Retention Rate and ensure your business has a solid foundation for growth.