Free SaaS Finance Tool
Net Revenue
Retention Calculator
Calculate your NRR instantly. Understand how your existing customers are driving growth or quietly shrinking your ARR.
How NRR works and why it matters
Net Revenue Retention measures how much recurring revenue you keep and grow from your existing customer base, expressed as a percentage of starting ARR or MRR.
Unlike Gross Revenue Retention (GRR), which only tracks losses, NRR accounts for expansion revenue, so a number above 100% is both possible and desirable. It's the single metric most SaaS investors use to assess revenue quality.
NRR = (Starting ARR
+ Expansions
− Contractions
− Churn) ÷ Starting ARR × 100
A SaaS company with NRR >100% is growing from its existing customer base alone. New logo acquisition becomes purely additive, not a requirement to stay flat.
NRR vs. GRR: what's the difference?
GRR only measures churn and contraction, so it can never exceed 100%. NRR adds expansion revenue back in, so it can exceed 100%. Investors look at both: GRR measures customer retention quality; NRR measures the overall expansion power of your base.
Should I use ARR or MRR for NRR?
Both are valid. The math is identical. Use ARR if you report annually (typical for annual contracts). Use MRR if you measure monthly. Crucially: don't mix them. If your contracts are annual but billed monthly, annualise everything first.
Does new customer ARR count in NRR?
No. NRR is calculated only on customers who existed at the start of the period. New logos acquired during the period are excluded. This is what makes NRR a pure measure of existing customer base health.
What's a good NRR for a Series A company?
For Series A ($1M–$10M ARR), investors look for NRR >100%. World-class at this stage is 110%+. Below 90% will raise serious flags in any fundraising process, signalling the company loses ground even before acquiring new customers.
How does DualEntry help track NRR?
DualEntry natively tracks ARR movements (expansions, contractions, and churn) directly in your general ledger. NRR and GRR are live metrics you see in real time, without a spreadsheet. Revenue recognition is automated under ASC 606, so your NRR is always based on recognised revenue, not bookings.
Track NRR live in your GL. Not in a spreadsheet.
DualEntry gives SaaS finance teams real-time ARR waterfall, NRR, and GRR natively inside your accounting system.
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