# Net Revenue Retention

*Startups & Venture Capital — Finicade finance glossary*

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`

**Also known as:** NRR, net dollar retention, NDR

**Related terms:** [Churn Rate](https://finicade.com/glossary/churn-rate), [Annual Recurring Revenue](https://finicade.com/glossary/annual-recurring-revenue), [Customer Lifetime Value](https://finicade.com/glossary/customer-lifetime-value), [Unit Economics](https://finicade.com/glossary/unit-economics), [Cohort Analysis](https://finicade.com/glossary/cohort-analysis)

Source: https://finicade.com/glossary/net-revenue-retention