Metric
NRR
Also known as: Net Revenue Retention, Net Dollar Retention, NDR
Net Revenue Retention — existing-customer revenue 12 months later, including upsell and churn, as a percentage of starting revenue.
NRR (Net Revenue Retention) measures how much revenue you retain and expand from existing customers over a 12-month period. Formula: (starting ARR + upsell - downsell - churn) / starting ARR.
NRR of 100% means upsell fully offsets churn. Above 110% is considered excellent and is essential for Series B fundability. Top-tier B2B SaaS hits 120-140%.
NRR is one of the strongest predictors of long-term growth. Expanding customers are cheaper than new customers and signal product-market fit.