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What is Net Revenue Retention?
Net revenue retention (NRR) measures the percentage of recurring revenue retained from a defined cohort of existing customers over a given period accounting for upgrades and expansion revenue, as well as downgrades and churn.
An NRR above 100% means the company is growing revenue from its existing customer base alone. NRR is considered one of the most important indicators of SaaS business health and growth potential.
Why NRR Matters
Investors and operators treat NRR as a proxy for product-market fit, customer success quality, and long-term business sustainability.
Components of NRR
- Starting recurring revenue from the cohort
- Plus: expansion revenue (upsells, cross-sells, seat additions)
- Less: downgrades and contractions
- Less: churn from customers who cancel or do not renew
How MaxIQ Helps
MaxIQ helps revenue teams improve NRR by surfacing the signals that drive expansion and churn before they become outcomes.
Related Terms
- Expansion Revenue
- Churn Prediction
- Account Health
- Customer Lifetime Value (CLV)
- Gross Revenue Retention (GRR)
