Net Revenue Retention (NRR)
Net Revenue Retention measures the percentage of recurring revenue retained from existing customers over a period, including expansion, contraction, and churn. An NRR above 100% means the business is growing from its existing customer base alone.
What is Net Revenue Retention?
Net Revenue Retention (NRR) -- also called Net Dollar Retention (NDR) -- is a SaaS metric that measures how much recurring revenue a company retains from its existing customer base over a given period, typically 12 months.
NRR accounts for:
- Expansion revenue: upgrades, cross-sells, seat additions
- Contraction revenue: downgrades, seat reductions
- Churn: customers who cancel entirely
How to Calculate NRR
NRR = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR x 100
Example: If you started the year with $1M in MRR, gained $200K in expansions, lost $50K to contractions, and $100K to churn:
NRR = ($1M + $200K - $50K - $100K) / $1M x 100 = 105%
An NRR of 105% means your existing customer base grew by 5% without any new logo acquisition.
What is a Good NRR?
| NRR Range | Rating | Context | |-----------|--------|---------| | 130%+ | Elite | Top-tier PLG companies (Snowflake, Twilio) | | 115-130% | Excellent | Strong expansion motion | | 100-115% | Good | Healthy retention with some growth | | 90-100% | Concerning | Revenue flat or declining from existing base | | Below 90% | Critical | Significant churn problem |
Why NRR Matters for Renewal Teams
NRR is the single most important metric for renewal operations because it captures the full picture: not just whether customers stay, but whether they grow. A team focused solely on preventing churn might maintain 95% gross retention while missing expansion opportunities that could push NRR above 110%.
How AI Agents Help
BaseCommand agents monitor the signals that drive NRR -- health scores that predict churn risk, expansion signals that identify upsell timing, and forecasting engines that project NRR with confidence intervals.
Browse the agent fleet to see how each agent contributes to NRR improvement.