NRR
--
Free · Instant · No signup
Net Revenue Retention (NRR) Calculator
NRR from starting ARR, expansion, contraction, and churned ARR.
Page updated 2026-09-04.
Calculator
Calculated Results
Ending cohort ARR
--
Net change
--
Growth from existing customers alone, isolated from new logos
Starting from $1,000,000 in ARR for a fixed customer cohort, adding $180,000 in expansion, and subtracting $40,000 in contraction and $70,000 in full churn, ending ARR for that same cohort is $1,070,000 -- a net change of +$70,000 and an NRR of 107%.
NRR above 100% (as here) means the existing customer base is growing in revenue even with zero new customers added -- expansion revenue ($180,000) is outpacing contraction and churn combined ($110,000). That's considered a strong signal of product value and pricing power in SaaS businesses.
New logos are deliberately excluded from both the starting and ending figures -- this measures only how the original cohort's revenue evolved, which is what makes NRR a cleaner signal of retention and expansion than total revenue growth (which new sales can mask problems in).
Why new logos have to stay out of this number
Cohort starting ARR in the denominator. New logos are excluded. Mixing new-customer ARR into this calculation would make it impossible to tell whether revenue growth is coming from retention and expansion (a sustainable, high-quality signal) or purely from new sales covering up churn (a much less durable growth pattern).
Contraction ($40,000, customers downgrading or reducing seats) and full churn ($70,000, customers leaving entirely) are tracked separately because they suggest different problems -- contraction often points to a pricing or packaging mismatch, while churn points to a more fundamental fit or competitive loss.
Starting ARR must be greater than zero for the percentage to be meaningful, since NRR is expressed relative to that starting base.
Related retention and growth metrics
This annual or quarterly cohort view pairs with a monthly bridge for finer-grained tracking -- see the Expansion & Contraction MRR Calculator for the month-over-month version with new and reactivated revenue included.
NRR feeds directly into customer lifetime value assumptions -- see the LTV:CAC Ratio Calculator for how retention translates into a lifetime-value figure.
Frequently Asked Questions (FAQ)
How is the 107% NRR figure calculated?
Ending cohort ARR = starting ARR + expansion - contraction - churn = $1,000,000 + $180,000 - $40,000 - $70,000 = $1,070,000. NRR = ending / starting x 100 = 107%.
Why are new customers excluded from this calculation?
Cohort starting ARR in the denominator. New logos are excluded. NRR is designed to isolate how the existing customer base's revenue changes on its own -- adding new-logo revenue would make it impossible to separate genuine expansion and retention from growth driven purely by new sales.
What's the difference between contraction and churn?
Contraction ($40,000 here) is existing customers reducing spend -- downgrading a plan or cutting seats -- while still remaining customers. Churn ($70,000) is customers leaving entirely, taking their ARR to zero. Both reduce NRR, but they usually point to different root causes.
Is 107% NRR considered good?
Generally yes -- NRR above 100% means the existing cohort's revenue is growing without any new customers, which is a strong signal in SaaS. Best-in-class companies often target 110-120%+, so 107% is healthy but not necessarily best-in-class depending on the segment.
What would NRR below 100% mean?
It would mean contraction and churn together exceeded expansion revenue -- the existing cohort is shrinking even before accounting for any new customers. That's a signal to investigate retention and expansion motions before scaling new-customer acquisition further.
You might also need
-
Stock Option & RSU Value Estimator Gross and after-tax value of RSUs or options from shares, FMV, strike, and a flat tax rate. -
Hard Money Loan Interest Calculator Prepaid points, monthly interest, and annualized cost on a short-term hard-money loan. -
Employee Turnover Cost Estimator Replacement cost from salary, vacancy months, recruiting, and ramp productivity loss. -
Days Sales Outstanding (DSO) Calculator DSO from ending AR and a chosen trailing sales window (30, 60, or 90 days).