Frequently asked questions
- How do you calculate net revenue retention?
- Take the recurring revenue of the customers you had at the start of the period, subtract churn and downgrades, add expansion, and divide by the starting revenue. New customers are always excluded.
- What is the difference between NRR and GRR?
- GRR counts only what you lose (churn and downgrades), so it cannot exceed 100%. NRR also adds expansion, so it can exceed 100%. Read them together: a wide gap means expansion is covering avoidable losses.
- What is a good NRR?
- Healthy mid-market SaaS companies usually target 100–110% NRR, and best-in-class enterprise or product-led companies often exceed 120%. Compare against your own trend and segment first.
About the author
Abdessamad Ghanem
Customer Experience & Customer Success Consultant · Founder of Clarivoxx
Abdessamad Ghanem works across Customer Support, Sales, Customer Success, Account Management and Partner Management. He writes Clarivoxx Insights for B2B SaaS professionals who own retention, adoption and customer outcomes.