Glossary
What is net revenue retention (NRR)?
Net revenue retention, or NRR, is the share of recurring revenue you keep from a group of existing customers over a period, after churn and downgrades and including expansion. An NRR above 100% means existing customers grew their spending more than others left or cut back. It leaves out revenue from new customers.
Published by Sellinger AI. Numbers and settings checked on 24 October 2026 against the fact register. Report an error.
How do you calculate NRR?
NRR = (starting recurring revenue + expansion minus contraction minus churn) / starting recurring revenue x 100, for customers who were active at the start. An example with made up numbers: 100,000 at the start, 12,000 expansion, 3,000 contraction, 7,000 churn: (100,000 + 12,000 minus 3,000 minus 7,000) / 100,000 = 102%.
How is NRR different from gross retention?
| Measure | Includes expansion? | Can exceed 100%? |
|---|---|---|
| Gross revenue retention | No | No |
| Net revenue retention | Yes | Yes |
Gross retention shows how well you keep what you have. NRR shows whether customers grow. Report both, because a high NRR can hide high churn among small customers.
What raises NRR?
- Catching churn risk early: drops in usage, a champion who leaves, silence before renewal.
- Starting renewal conversations months before the contract ends.
- Expansion at natural moments, such as new teams or usage limits.
- Fixing the product or service issues behind churn.
How Sellinger handles it
Sellinger does not calculate NRR. Its customer success goals and rule pack support the conversations that move it: the customer success goals include opening renewals 90 days early, and the rule pack flags cancellation risk and renewal mentions for a person.
Common questions
What is a good NRR?
Does NRR include new customers?
Is NRR the same as net dollar retention?
Sources and method
General subscription finance practice; the example is illustrative. Catalog text from the in-product goal and rule templates.
Related: Churn rate, Upselling and cross selling, Customer health score, Renewal and churn outreach.
