Net Revenue Retention / Marketing Terms Net Revenue Retention Net revenue retention (NRR) is a key performance metric that measures how much recurring revenue from existing customers is retained over a given period, accounting for upgrades, downgrades and churn. It reflects how well a company is growing revenue within its current customer base. A high NRR indicates strong customer satisfaction, successful upselling and reduced churn, all of which support sustainable growth. NRR is calculated by taking the starting monthly recurring revenue (MRR) from a cohort of existing customers, adding expansion revenue (such as upgrades and cross-sells), and subtracting revenue lost from downgrades and churn. The result is expressed as a percentage of the original MRR. For example, if you started with $100,000 in MRR, added $20,000 through upgrades, and lost $10,000 through cancellations and downgrades, your NRR would be 110 percent. A net revenue retention rate above 100 percent means you are growing revenue from your existing customers without needing to acquire new ones. This is especially important for SaaS companies and subscription-based businesses, where recurring revenue is critical. For nonprofits with membership models or recurring donors, NRR can be a valuable indicator of supporter engagement and program effectiveness. Improving NRR often involves customer success initiatives, value-add features, and targeted communications that deepen relationships over time.