Net Revenue Retention
Also: NRRNet Dollar RetentionNDR
The percentage of recurring revenue retained from existing customers over a year, including expansion and after churn.
Why it matters
NRR shows whether your existing customer base grows or shrinks on its own, before any new sales. Above 100 percent means expansion outpaces churn and the base grows by itself, a powerful, efficient form of growth. It is one of the strongest signals of product value and a top driver of valuation.
How it is calculated
NRR = (starting recurring revenue + expansion - contraction - churn) / starting recurring revenue x 100
What good looks like
Above 100 percent is the goal, best-in-class B2B SaaS often reaches 110 to 130 percent. Below 100 means the base is shrinking and new sales must first replace lost revenue before adding growth.
In the European market
Expansion that drives NRR can move differently in Europe, where budget cycles and procurement in markets like the DACH region can make upsell more deliberate and process-bound than in faster-moving markets. The path to expansion may be slower but stickier once established. Track NRR per market so a methodical expansion motion is not mistaken for a weak one.
Related terms
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