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Startups & Venture Capital

Net Revenue Retention

Also called: NRR, net dollar retention, NDR

Net revenue retention measures revenue from existing customers a year later, including upgrades and downgrades. Above 100% means the existing base grows on its own — the company would expand even if it never signed another customer. It's the single most predictive SaaS metric, and the reason best-in-class businesses at 120% or more command such different multiples from those at 90%.

Formula

NRR = (Starting ARR + Expansion − Churn − Contraction) ÷ Starting ARR

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