Net Revenue Retention Calculator
Net revenue retention (NRR) tracks recurring revenue remaining from an opening customer cohort after expansion, downgrades and cancellations. New-customer revenue is excluded so the cohort itself is measured.
How to use this calculator
- Enter opening recurring revenue and cohort expansion, contraction and churn for the same period.
- Check that all inputs use the same units, period and population scope.
- Change one assumption at a time when comparing scenarios.
Formula used by net revenue retention calculator
NRR = (starting revenue + expansion − contraction − churn) ÷ starting revenue × 100%.
- NRR = (starting revenue + expansion − contraction − churn) ÷ starting revenue × 100%.
- Use the same customer cohort, currency and revenue-recognition rules for every component. Do not include revenue from newly acquired customers.
- The tool validates inputs and rounds displayed figures for readability; it does not validate assumptions against external records.
Worked examples
Worked example
An opening cohort contributes 100,000; expansion adds 12,000, downgrades remove 4,000 and cancellations remove 6,000.
(100,000 + 12,000 − 4,000 − 6,000) ÷ 100,000 = 102%.
Net revenue retention is 102%.
Understanding the result
Net revenue retention (NRR) tracks recurring revenue remaining from an opening customer cohort after expansion, downgrades and cancellations. New-customer revenue is excluded so the cohort itself is measured.
Use the same customer cohort, currency and revenue-recognition rules for every component. Do not include revenue from newly acquired customers.
Important notes
Use the same customer cohort, currency and revenue-recognition rules for every component. Do not include revenue from newly acquired customers.
Treat the result as an estimate from the entered assumptions. For commercial, statistical, engineering or health-related decisions, verify relevant specifications and professional guidance.
Frequently asked questions
What does NRR above 100% mean?
Expansion from existing customers exceeded revenue lost through downgrades and cancellations.
Is NRR the same as customer retention?
No. NRR measures revenue movement; customer retention counts customers.
How should I interpret this result?
Use the same customer cohort, currency and revenue-recognition rules for every component. Do not include revenue from newly acquired customers.
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Related explanations
Learn the method behind the number or compare the terminology before using the calculator.
- How to Calculate Break-Even Point — Learn the break-even formula for units and revenue and understand fixed costs, price, and variable costs.
- How to Calculate a Z-Score — Learn how a z-score shows how far a value is from the mean in standard-deviation units.
- Percent Difference — Understand percent difference, when it is appropriate, and how it differs from percentage change and percent error.
This page provides a calculation tool plus explanatory information so you can understand what the result means and when the underlying method may not fit your situation.