Net Revenue Retention (NRR) is a key metric that measures the percentage of recurring revenue that is retained from existing customers over a specific period.  This metric is determined by including upgrades, downgrades, ratios, and more parameters. This metric reflects how well a business is performing and grows its revenue with existing customers, without acquiring new customers.

How to Calculate Net Revenue Retention ( NRR)

NRR = 

(Recurring Revenue at Start + Expansion Revenue − Churned Revenue)  

(Divided By ) 

Recurring Revenue at Start × 100
NRR majorly evaluates how effectively a company retains and expands revenue within its current customer base. A score of this metric above 100% indicates positive growth from existing customers. While below 100% shows revenue loss due to churn or contraction.

 NRR offers deep insight into customer-driven growth. It’s essential for tracking sustainable revenue and identifying opportunities to maximize value from your existing client base.