Net Revenue Retention (NRR)
Net Revenue Retention (NRR) is a core SaaS metric that shows how much recurring revenue you keep from existing customers over a specific period. It factors in both upgrades (expansions) and downgrades (contractions or churn). NRR helps you understand the strength of customer relationships and the success of your upselling and retention strategies.
How NRR Is Calculated
NRR compares the recurring revenue you start with against how much you retain from the same customers at the end of the period. This shows whether you are growing or shrinking your revenue base.
NRR Formula
Net Revenue Retention = Retained ARR ÷ Opening ARR
Opening ARR: The total ARR at the start of the period, across all existing customers.
Retained ARR: The total ARR at the end of the period from those same customers, excluding the effects of new customers who joined after the start date.
NRR Report Settings
The NRR report in Rillet includes several configurations to help tailor your analysis:
MRR/ARR: Switch between viewing recurring revenue as monthly (MRR) or annual (ARR). By default, this matches your organization’s settings.
Interval:
Month: Each row in the report represents one month. Best for businesses with mostly monthly subscriptions.
Trailing 12 Months: Each row represents a rolling 12-month period. Best for businesses with mostly annual subscriptions.
Filter by Field Value: Focus the report on specific groups of customers. For example, you can filter to see NRR only for Enterprise customers. For more information on fields, see this article: 📄 Fields Overview.
See Also
Explore more revenue growth and retention metrics:
See Also:
Learn more about customer and revenue retention:
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