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Net Revenue Retention (NRR) Calculator

Net and gross revenue retention from churn and expansion, and how NRR flows through to LTV, growth and the ARR multiple.

Updated · By Niraj Kumar · 3 sources

Revenue and customers

$

ARPU $100 a month.

Retention

%
0%15%

Customers who cancel each month. 2% a month is 22% a year.

%
−2%5%

Upgrades and added seats less downgrades, from customers who stay. Gives NRR of 92%.

Margin and acquisition

%
0%100%

Revenue left after hosting, support, payment fees and third-party APIs.

$

Ads, tools and the pay of sales and marketing staff. CAC $733.

Cash

$
$

R&D, G&A, rent: everything outside cost of revenue and sales and marketing.

LTV settings

%

What future profit is worth today. 0 for an undiscounted LTV.

months

How long a customer's profit counts. 60 is common.

Net revenue retention91.6%Gross revenue retention 78.5%
Customer lifetime value
$3,091
60 months, discounted 10%; simple LTV $3,900
CAC
$733
$22,000 ÷ 30 new customers
LTV:CAC
4.2:1
Healthy, at or above 3:1
CAC payback
9.4 months
Under 12 months: efficient
Implied valuation
$2,457,000
3.4× ARR on 49% growth; Rule of 40: 16
Cash runway
Default alive
Burning $20,200 a month; profitable in month 11, before the cash runs out
What if you pulled one lever?Each row changes one input and leaves the rest as entered. Valuation moves in steps as growth, churn and NRR cross a band.
ChangeLTVLTV:CACPaybackValuationBreak-even
As entered$3,0914.2:19.4 months$2,457,000Month 11
Cut monthly churn by 1 point+$953+1.30–+$1,053,000−2 mo
Add 0.5 points of monthly expansion+$417+0.57––−1 mo
Acquire customers 10% cheaper–+0.47−0.9 mo–−1 mo
Raise gross margin by 5 points+$198+0.27−0.6 mo+$63,000−2 mo
One customer: gross profit less CACCAC not yet earned backProfit after CAC
-$750-$500-$250$0$250$500Payback, month 9.703691215

Expected profit from a new customer, allowing for the chance they churn and for expansion. Simple payback ignores churn: 9.4 months.

Cash in the bank, month by monthShort of cashCash in the bank
$0$250,000$500,000$750,000$1,000,000$1,250,000061218243036

Burning $20,200 a month; profitable in month 11, before the cash runs out. New customers join at today's ARPU; costs stay flat.

Against SMB SaaS benchmarksSmall-business customers, contracts under about $5,000 a year. Checked October 11, 2026.
MetricYoursMedianStrongWhere you sit
Monthly churn2%2%1%Above median
Net revenue retention92%92%102%Above median
Gross margin78%75%82%Above median
CAC payback9.4 months12.0 months8.0 monthsAbove median

How is net revenue retention calculated?

NRR is this year's revenue from last year's customers, divided by their revenue a year ago, with upgrades and after churn and downgrades. From 2% monthly churn and 1.3% monthly expansion: ((1 − 0.02) × (1 + 0.013000000000000001))^12 = 91.6%. GRR leaves out expansion: 78.5%.

ARPU = MRR ÷ customers; gross profit per customer g = ARPU × gross margin; annual churn = 1 − (1 − c)^12; NRR = ((1 − c) × (1 + e))^12; GRR = (1 − c)^12; simple LTV = g ÷ c; LTV = Σ g × q^t for t = 0 … H − 1, q = (1 − c)(1 + e) ÷ (1 + d)^(1/12); CAC = sales and marketing ÷ new customers; payback = CAC ÷ g; LTV:CAC = LTV ÷ CAC; cash(t+1) = cash(t) + MRR(t) × margin − sales and marketing − other costs; runway = months until cash < 0

This page uses the same method as the SaaS Unit Economics Calculator, which explains each term and assumption in full.

Worked example

An SMB SaaS on $60,000 MRR from 600 customers at $100 a month, adding 30 a month on $22,000 of sales and marketing, with 2% monthly churn, 1.3% monthly expansion, 78% gross margin, $45,000 of other monthly costs and $600,000 in the bank.

  1. 1Each month 98% of revenue stays and grows 1.3%: 0.980 × 1.013 = 0.9927
  2. 2Over a year: 0.9927^12 = NRR 91.6%
  3. 3Without expansion: 0.980^12 = GRR 78.5%

NRR 91.6% and GRR 78.5%.

Frequently asked questions

What is a good NRR for SaaS?

Around 100 to 102% is the median for private B2B SaaS in 2025 and 2026 surveys; above 110% is strong and above 120% is top-tier, usually enterprise or usage-priced products. SMB and self-serve products commonly sit at 85 to 95% because small customers churn more and expand less.

What is the difference between NRR and GRR?

Gross revenue retention counts only losses, churn and downgrades, so it cannot exceed 100%. Net revenue retention adds back expansion from the customers who stay. GRR shows how sticky the product is; NRR shows whether the existing base grows on its own. Investors read both: a high NRR on a low GRR means a few big accounts are hiding a leaky bucket.

Sources

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