Definition

What is Net revenue retention (NRR)?

Net revenue retention (NRR) is recurring revenue from an existing group of customers at the end of a period, after expansion, downgrades and churn, as a share of what they started with.

A worked example

An example with round numbers. On January 1, a group of existing customers carries $1,000,000 of ARR. During the year they add $150,000 in expansions and $30,000 from renewal uplifts, downgrade by $40,000 and cancel $60,000. Ending ARR from the same customers is $1,080,000, so NRR is 108%. Customers signed during the year are left out; they join next year's starting group. Take out the expansion and the uplift and the same numbers give a gross revenue retention of 90%.

How to read it

For scale, SaaS Capital's 2025 survey of private B2B SaaS companies puts median NRR at 101% and median gross retention at 91%, and companies above 130% NRR grew at about twice the median rate. Treat that as context, not a target. Three choices decide whether your own number means anything. Measure on ARR from contracts, not invoices, so a change in billing frequency does not read as churn. Fix the starting group on the first day of the period. And report by cohort and segment rather than one blended figure, because large accounts expanding can hide small ones leaving. The formulas and review cadence are in how to measure subscription metrics.

In Salesforce

Salesforce has no NRR field. The standard objects hold some of the inputs: the Contract has a start date, end date and term, and the Opportunity has an Amount that does not factor time into its calculation. NRR needs starting ARR for each customer, every expansion, downgrade and cancellation in the period, and ending ARR for the same customers. Teams compute it in reports, often from a reporting snapshot taken at the start of the period, because a live roll-up field only shows today's value. Salesforce CPQ keeps the install base as SBQQ__Subscription__c records under the Contract; Revenue Cloud Advanced keeps it on Asset, with AssetStatePeriod spans that carry MRR.

How Kugamon handles it

Kugamon does not calculate NRR as a field; it keeps the inputs as native records you can report on. With the Subscription Management add-on, each Contract rolls up ARR, MRR and TCV. New, Expansion and Renewal record types carry from Opportunity to Quote to Order, so expansion bookings report separately from renewals, and the renewal price uplift lands on the Renewal Opportunity. Cancelling a Contract sets its active Subscriptions to Cancelled and closes the Renewal Opportunity as Lost, but the cancelled Subscription records stay, so lost revenue remains reportable; a cancelled Subscription drops off the Renewal Opportunity. Manage Contracts on the Account shows whether each renewal is trending lower, higher or the same.

Related terms

Source: www.saas-capital.com

Common questions

Net revenue retention (NRR) — questions

Above 100% means your existing customers grow on their own, before any new business. SaaS Capital's 2025 survey of private B2B SaaS companies puts the median at 101%, and it is generally higher at larger contract values: 98% below $12k ACV versus 106% above $250k. Compare yourself with companies of a similar deal size, and watch your own trend more than any benchmark.

NRR counts expansion and price uplifts; gross revenue retention (GRR) does not, so GRR can never go above 100%. NRR tells you whether the base grows on its own. GRR tells you how much of it you keep. A strong NRR can hide a weak GRR when a few large accounts expand while smaller ones leave, so track both.

Yes. An uplift raises the recurring revenue of a customer you already had, so it sits on the expansion side of NRR, next to added seats and modules. It does not count toward GRR. Report uplift as its own line as well, so you can see how much of your NRR comes from price and how much from customers buying more.

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