Net revenue retention (NRR) benchmarks
Good net revenue retention for SaaS is 100%+, with best-in-class above 120%. Learn how NRR is calculated, why it matters, and benchmarks by segment.
Net Revenue Retention (NRR), also called net dollar retention, measures how much recurring revenue you keep and grow from existing customers over a year — including upgrades, downgrades and churn, but excluding new customers.
Benchmarks
| NRR | Interpretation |
|---|---|
| Below 90% | Leaky — existing base is shrinking. |
| 100% | Expansion exactly offsets churn. |
| 110–120% | Strong; common among healthy B2B SaaS. |
| Above 120% | Best-in-class; the existing base grows fast on its own. |
How to calculate NRR
NRR = (Starting MRR + expansion − contraction − churn) ÷ Starting MRRMeasured for a cohort of existing customers over 12 months, excluding any new logos acquired in the period.
Why NRR is so powerful
With NRR above 100%, your revenue grows even if you stop acquiring new customers — a compounding flywheel. It is one of the strongest predictors of long-term SaaS value and a metric investors weight heavily.
How to improve NRR
- Build natural expansion into pricing (seats, usage, tiers).
- Drive adoption so accounts grow into higher tiers.
- Reduce contraction and downgrades with proactive success.
- Land-and-expand: start small, grow within the account.
Quick LTV:CAC & payback check
Run the numbers on your own startup
Use the free SaaS Metrics calculator — no signup, instant results.
Open the SaaS Metrics CalculatorFrequently asked questions
What is a good NRR?
Above 100% is the goal, meaning your existing customer base grows year over year. 110–120% is strong, and above 120% is best-in-class.
What is the difference between gross and net retention?
Gross revenue retention caps at 100% and ignores expansion (it only measures revenue kept). Net retention includes expansion, so it can exceed 100%.
Does NRR include new customers?
No. NRR measures only the existing cohort's revenue change. New-customer revenue is tracked separately as new business.