Net revenue retention (NRR) is the percentage of recurring revenue retained from a starting cohort over a defined period, including expansion and net of churn. Also called net dollar retention (NDR), it is measured across a defined period (typically 12 months) and includes expansion revenue (upsells, cross-sells, seat growth, usage growth) net of churn and contraction. It is the single most-watched health metric in modern SaaS because it captures whether existing customers grow, shrink, or leave on net, independent of new customer acquisition.
The formula: NRR = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR, expressed as a percentage. An NRR of 100 percent means the customer base is flat in revenue te...