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★ Does revenue from existing customers grow or shrink?

Net Revenue Retention (NRR) Calculator

Calculate net revenue retention from starting MRR, expansion, contraction and churn. See how your NRR compares with the 100%, 110% and 120% benchmarks.

  • Runs in your browser
  • No signup
$

MRR from customers you had 12 months ago.

$

Upgrades, seats, usage growth.

$

Downgrades.

$

From customers who left.

Your NRR

110.0%

Better

  • Gross revenue retention (no expansion): 88.0%.
  • Ending MRR from this cohort: $110,000.

NRR = (starting MRR + expansion − contraction − churned MRR) ÷ starting MRR

NRR: 110.0%.

Expansion revenue lives in the product. Let's build the upsell moments.

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01

How it works

NRR = (starting MRR + expansion − contraction − churned MRR) ÷ starting MRR

Take the customers you had at the start of the period and only those. Add what they expanded, subtract what they downgraded and what churned, and divide by where they started. New customers are excluded on purpose.

Above 100% means your existing customers alone grow revenue, even if you stop selling. That is why investors weigh it so heavily.

02

Worked example

A cohort of customers paid $100,000 MRR a year ago. Over the year they added $22,000 in upgrades, downgraded $4,000 and churned $8,000.

NRR worked example
InputValue
Starting MRR (cohort)$100,000
Expansion MRR$22,000
Contraction MRR$4,000
Churned MRR$8,000
NRR110.0%

That lands in the better band. Change any input above to run your own numbers.

03

Benchmarks

Bessemer Venture Partners grades NRR as 100% good, 110% better and 120%+ best. Those bands were framed for growth-stage companies selling to mid-market and enterprise; products for small businesses usually run lower.

NRR benchmark bands
NRRReading
under 100%Shrinking: existing customers spend less each year
100% to 110%Good
110% to 120%Better
120% and aboveBest

Sources: Bessemer Venture Partners, State of the Cloud 2023; ChartMogul, Net Revenue Retention.

04

How to improve it

  • Price on a value metric that grows with the customer: seats, usage, records, locations.
  • Build in-product upgrade moments where users hit a limit while getting value, not on a paywall screen.
  • Assign someone to expansion, not just renewals, for your largest accounts.
  • Reduce downgrades by checking usage before renewal and fixing adoption gaps early.
05

Questions founders actually ask

What is a good net revenue retention?
Bessemer grades 100% as good, 110% as better and 120%+ as best, for growth-stage B2B companies. Products sold to small businesses usually sit lower, because small customers churn more and expand less.
What's the difference between NRR and GRR?
Gross revenue retention ignores expansion and can never exceed 100%. It shows how much revenue you keep. NRR adds expansion and shows whether the base grows. The calculator shows both.
Should NRR be monthly or annual?
Annual is the standard investors use: compare a cohort today with the same cohort 12 months ago. Monthly NRR is noisy and easy to misread.
Do new customers count in NRR?
No. NRR only measures customers who existed at the start of the period. Including new customers turns it into a growth rate and defeats the point.
06

Related metrics

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07

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Fine print

Tools: on the house.
Engineer: by the hour.

Moving them is the expensive part, and the part I'm good at: activation flows, upsell moments and the product work behind better numbers.

I'm Himanshu, an AI and full-stack engineer. I build MVPs, AI agents and the growth plumbing around them for early-stage startups.

Hire me →My projects