Gross & Net Revenue Retention Calculator

How it works

GRR = (start − churn − contraction) ÷ start (capped at 100%); NRR = (start − churn − contraction + expansion) ÷ start; logo retention = 1 − churned customers ÷ starting customers; revenue lifetime ≈ 1 ÷ (1 − GRR)

Revenue retention follows one cohort of customers over a year and asks how much of their recurring revenue is still there. Gross retention counts only losses — cancelled accounts and downgrades — and so can never exceed 100%; it measures how sticky the product is. Net retention adds back expansion from upsells, seat growth and price increases, and when it exceeds 100% the existing base grows by itself, which is the engine behind the best software companies: a 120% NRR business doubles a cohort’s revenue in under four years without selling to a single new customer. The two must be read together — high NRR on weak GRR means a few big accounts are expanding while many small ones leave, a fragile pattern. Logo retention and the change in revenue per surviving account separate the “who left” from the “how much do the rest spend” stories.

Worked example

A cohort worth $1.0 M a year ago lost $80 k to churned customers and $40 k to downgrades but added $230 k of expansion: GRR 88.0% (typical SMB), NRR 111.0% (strong). 356 of 400 logos remained (89%), each now worth $3,118 instead of $2,500; left alone the cohort would be 168% of today’s revenue in five years.

Frequently asked questions