Business
Net Revenue Retention Calculator
Reconcile starting-cohort MRR through expansion, contraction, and churn to ending cohort MRR, NRR, and GRR. Compare cohort retention with total ending MRR, exact scenarios, definitions, limitations, and a professional PDF record.
Ending MRR from starting cohort-
Net revenue retention-
Cohort MRR before expansion-
Gross revenue retention-
Total ending MRR including new customers-
Net change in starting-cohort MRR-
Decision view
Starting-cohort retention ledger
Starting-cohort retention ledgerExpansion is added while contraction and churn are deducted from the frozen opening cohort.
NRR and GRR under churn scenariosChurned starting-cohort MRR is varied across the exact scenarios; net and gross retention stay on the same percentage scale.
Exact scenario comparisonChurned starting-cohort MRR changes while all other entered assumptions remain constant.
| Churned starting-cohort MRR | Ending MRR from starting cohort | Net revenue retention | Cohort MRR before expansion | Gross revenue retention | Total ending MRR including new customers | Net change in starting-cohort MRR |
|---|
Period-by-period detail
Starting-cohort retention ledger
How to use Net Revenue Retention Calculator
- Freeze the customer and MRR cohort at the start of the measurement period.
- Enter expansion, contraction, and churn attributable only to that opening cohort.
- Keep new-customer MRR in the separate field and outside NRR.
- Use the retention bridge to confirm every movement reconciles to ending cohort MRR.
Calculator guide
Understanding Net Revenue Retention Calculator
Net revenue retention follows only the customers present at the start of a period. Expansion is added, contraction and churn are removed, and new-customer MRR stays outside the NRR numerator.
Calculation method
How the calculation works
Reconcile starting-cohort recurring revenue through expansion, contraction, and churn while excluding new-customer revenue from NRR. Ending cohort MRR equals starting MRR plus expansion minus contraction and churn. NRR divides ending cohort MRR by starting MRR. GRR excludes expansion and divides retained starting-cohort MRR by the same opening cohort.
Cohort governance
Define the movement ledger before calculating NRR
A retention metric is only comparable when every recurring-revenue movement has one stable classification.
Worked situations
Practical examples
- Expansion can lift NRR above 100% even when some customers churn.
- GRR cannot benefit from upsell, so it reveals the loss side more directly.
- Strong new sales can raise total MRR while NRR remains weak.
Better inputs
Useful tips
- Define reactivation, pauses, usage, credits, and FX consistently.
- Use the same recurring-revenue normalization at both cohort dates.
- Review NRR by segment, product, contract size, and customer age.
Before relying on the result
Limitations and common mistakes
- NRR can hide customer-count loss when surviving accounts expand.
- Cohort boundaries and MRR policy can materially change the result.
- The metric does not measure margin, acquisition cost, cash collection, or customer concentration.
Reference
Key terms
- Starting cohort
- Customers and recurring revenue present at the beginning of the period.
- Expansion
- Additional recurring revenue from the starting cohort.
- Contraction
- Reduced recurring revenue from retained cohort customers.
- GRR
- Gross revenue retention before expansion.
Important note
Calculated from the entered values using the displayed accounting method. Reconcile material decisions with source records and applicable accounting policy.
Frequently asked questions
Can NRR be above 100%?
Yes, when expansion from retained customers exceeds contraction and churn.
Why exclude new-customer MRR?
NRR is designed to measure the performance of the starting customer cohort.
What is the difference between NRR and GRR?
NRR includes expansion; GRR does not and therefore cannot exceed 100% under standard definitions.
Should reactivated customers be included?
That depends on the reporting policy; choose one treatment and apply it consistently across periods.