All terms
SaaS & Startupadvanced

Net Revenue Retention

NRR

Definition

A SaaS metric measuring the percentage of recurring revenue retained from existing customers, factoring in expansions, contractions, and churn. NRR above 100% means growth from existing customers alone.

Why it matters

NRR above 100% is the holy grail of SaaS. It means even if you stopped acquiring new customers, revenue would still grow. Investors prize high NRR as a sign of a "land and expand" business.

Example

A SaaS company starts the year with £100K MRR from existing customers. After upgrades, downgrades, and churn, those same customers generate £112K at year end, NRR of 112%.

Related terms

Learn the language of business - and build the systems behind it.

Rich Girl Systems turns 1168+ founder concepts into a step-by-step programme with daily challenges, XP and your own assistant.

Take the free founder quiz