SaaS Net Revenue Retention (NRR)
Measure revenue growth specifically from your existing customers, factoring in both upgrades and cancellations.
Is your agency truly growing, or just constantly replacing churned MRR?
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The Growth Within
This formula measures the underlying financial expansion (or recession) of the customer base you already own.
NRR = (Starting MRR + Expansion MRR - Downgrade MRR - Churn MRR) / Starting MRR * 100
How it’s used
You track a specific cohort of clients over a single month. Input your Starting Monthly Recurring Revenue, and map exactly how much new revenue you successfully upsold them versus how much was bled out to downgrading tiers or full cancellations.
Why it matters
If your NRR is over 100%, your agency or SaaS is structurally growing even if you don’t acquire a single new customer that month. It profoundly shifts your business focus away from expensive front-end acquisition toward improving back-end product value, usage, and dedicated customer success teams.
Frequently Asked Questions
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