Strategy & economics

Net revenue retention

Also known as: NRR · net dollar retention · NDR

The percentage of recurring revenue retained from existing customers over a period, including expansion (upgrades) and net of churn (cancellations, downgrades) — above 100% means the existing customer base is growing revenue without new acquisition.

Net revenue retention (also NDR / net dollar retention) measures how much existing-customer revenue a business retains through a period, accounting for expansion and churn together. Formula: (start-of-period recurring revenue + expansion − churn − downgrades) ÷ start-of-period recurring revenue. Above 100% means the existing customer base is growing revenue organically, which is the strongest retention signal a SaaS can produce — public-market SaaS benchmarks run 110-130% for healthy companies, 140%+ for best-in-class. Below 90% is a leaky-bucket warning. NRR is more important than gross retention for investor conversations because it captures whether the product's commercial relationship with existing customers is compounding or eroding.

Read next

See also

← Back to the glossary