GLOSSARY · CHURN METRICS
Net revenue retention (NRR)
Net revenue retention (NRR) is the recurring revenue kept from existing customers over a period, including upgrades and minus churn and downgrades.
Also called NRR · Net dollar retention · NDR
NRR starts from the recurring revenue of the customers you had at the beginning of a period and measures what those same customers pay at the end. Upgrades and add-ons raise it; cancellations and downgrades lower it. Revenue from new customers is excluded.
NRR above 100% means existing customers grow faster than they leave, so the business grows even with no new sales. It is common to measure it over 12 months, though tools differ in the period and the exact rules.
A high NRR can hide a churn problem when a few customers expand a lot. Read it with gross revenue retention, which ignores expansion, to see how much of the base is actually kept.
Formula
(Starting MRR + expansion − contraction − churned MRR, from customers present at the start) ÷ starting MRR × 100
Related terms
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Sources
- Chargebee Docs: Recurring revenue (net revenue retention) chargebee.com
- Chargebee Docs: Retention chargebee.com