Net Revenue Retention (NRR)
Net Revenue Retention, or NRR, measures how much recurring revenue you kept and grew from existing customers alone.
Starting MRR plus expansion, minus contraction and churn, divided by starting MRR. That is NRR. Care about it because it reveals whether revenue would grow with zero new customers. Above 100 percent, your base grows itself.
Signal Type
Metric Role
Metric Type
The Formula
Worked example
Benchmarks and interpretation
Where the number actually comes from
When to use it
Common Mistakes
In the REACT framework
NRR sits in the Talk phase as REACT's universal retention metric. Below 100 percent, fix retention first: new business is refilling a draining bucket. Above it, your existing customers are growing revenue on their own.
Related metrics
Frequently Asked Questions
What is Net Revenue Retention?
Net Revenue Retention, or NRR, measures how much recurring revenue you kept and grew from existing customers alone. It tells you whether revenue would grow with zero new customers, which changes every other priority.
How do you calculate Net Revenue Retention?
Use the formula: NRR = ([Starting MRR + Expansion - Contraction - Churn] ÷ Starting MRR) × 100. Keep both inputs in the same reporting period and avoid mixing users, sessions, events, or customers unless the formula calls for it.
What data do you need for NRR?
You need starting revenue and revenue movement, pulled from the relevant connected sources and computed for the same period.
What mistakes should you avoid with NRR?
Include contraction, not just churn, or the number flatters. And segment it: a healthy blended NRR can hide one cohort quietly draining while another expands.
When should marketers use NRR?
Use NRR when setting the balance between acquisition and expansion effort. Below 100 percent, retention is the priority, because new business is refilling a draining bucket. Above it, growth spend compounds instead of compensates.
What is a good NRR?
100 percent is the line that matters: above it your base grows itself. Strong recurring-revenue businesses run well above, but the honest benchmark is your own trajectory and segment.
Sources and methodology. NRR formula and definition derive from standard marketing analytics practice and platform reporting conventions. REACTIQ360 harmonises source data from CRM / billing / ecommerce, Customer lifecycle systems, Harmonisation layer and applies a consistent same-period computation methodology.
One screen.
One story. One move.
One story. One move.
REACTIQ360 harmonises CAC and 129 other digital marketing metrics into one decision-ready intelligence layer. Powered by proprietary metrics and agentic AI. Beta access is invite-only.
Join the beta waiting list
