What is Net Revenue Retention (NRR)?
How much recurring revenue your existing customers grow into - or shrink out of - over a year.
Net Revenue Retention (NRR): definition
NRR isolates how the customers you already have behave, ignoring new logos. Above 100% means expansion from existing customers more than offsets churn - the business would grow even with zero new sales. It is one of the strongest predictors of durable SaaS growth.
Net revenue retention
NRR = (Starting MRR + Expansion − Contraction − Churn) ÷ Starting MRR × 100
Measured over a cohort of existing customers only - new customers are excluded from the numerator and denominator.
How Fintra handles it
Fintra computes NRR from the same MRR movement data it already tracks - expansion, contraction, and churn against a starting cohort - so the metric is consistent with recognized revenue. It can be viewed by cohort and segment, and it feeds the forecast so retention assumptions are grounded in actual behavior.
Worked example
Frequently asked questions
What is a good NRR?
For SaaS, 100% is the break-even line; best-in-class businesses run 110–130% or higher, meaning existing customers alone drive growth. Below 100% means you are losing recurring revenue from your base and must acquire aggressively just to stand still.
What is the difference between NRR and gross retention?
Gross revenue retention counts only losses (contraction and churn) and caps at 100% - it measures how much you keep. NRR adds expansion, so it can exceed 100%. Comparing the two shows how much of your retention story depends on upsell.
Why is NRR so important to investors?
Because high NRR means compounding growth from customers you already paid to acquire, which is far more capital-efficient than growth from new logos. It is one of the clearest signals of product value and pricing power.
How does Fintra measure NRR?
Fintra derives NRR from its MRR movement data (expansion, contraction, churn) against a starting cohort, keeping it consistent with recognized revenue and viewable by segment so retention assumptions in the forecast reflect reality.
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