What is net revenue retention (NRR)?

NRR is the percentage of recurring revenue you keep from your existing customers over a period, including expansion (upsells, more seats, usage) and after subtracting downgrades and churn. Above 100% means your existing base grows on its own, even if you never add a single new customer. It is the clearest single measure of whether your product gets more valuable over time.

What is a good NRR for SaaS in 2026?

The 2026 B2B SaaS median is about 108%, top quartile is 125%+, and best-in-class is 135%+. Anything below 100% means your base is shrinking. But read it by segment: enterprise medians near 118% while SMB sits closer to 97%, so a good SMB number and a good enterprise number are very different.

How do you calculate NRR?

NRR = (starting MRR + expansion MRR - contraction MRR - churned MRR) / starting MRR, measured over the same cohort and period. Crucially, it only counts revenue from customers you already had at the start; new-customer revenue is excluded.

What is the difference between NRR and GRR?

Gross revenue retention (GRR) strips out expansion, so it can never exceed 100% and shows only how much you lost. NRR adds expansion back in and can exceed 100%. Reading them together is diagnostic: 110% NRR with 85% GRR means expansion is papering over heavy churn, while 105% NRR with 92% GRR is genuinely sticky. Always look at both.

How much does NRR affect valuation?

A lot. A 10-point NRR improvement is worth roughly a 20-30% valuation uplift, and companies above 120% NRR command 30-50% higher multiples than 100% peers at the same ARR. Public SaaS above 120% NRR have traded near 9.3x EV/revenue versus about 3.1x for those under 100%.

How do I improve my NRR?

Fix the gross-retention floor first (it is the cheapest point to win), then make sure your pricing has room to expand into (a higher tier, seats, or a usage line), and drive customers to first value fast so they stick and grow. Usage-based pricing structurally lifts NRR: metered models run 115-130% versus 95-105% for flat rate.

Net Revenue Retention (NRR) 2026: Benchmarks + Free Calculator

Net revenue retention for 2026: a free interactive NRR calculator, the formula, benchmark bands by stage and segment, the NRR-vs-GRR diagnostic, and how to lift it.

By Adam Petty

Updated

July 20, 2026

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the short answer

Net revenue retention (NRR) is the percentage of recurring revenue you keep and grow from existing customers, including expansion and after churn: (starting MRR + expansion − contraction − churn) ÷ starting MRR. Above 100% means your base grows on its own. A good NRR in 2026 is around the 108% median; 125%+ is top-quartile and 135%+ is best-in-class (2026 B2B SaaS benchmarks).

From the team at Flowjam · Published July 2026

try it live · your nrr

Does your customer base grow on its own?

NRR = (starting + expansion − contraction − churn) ÷ starting. Above 100% means net-negative churn.

Starting MRR ($)
Expansion MRR ($)
Contraction MRR ($)
Churned MRR ($)

Load a segment:

Your NRR

104%

Median

Also check: GRR

89%

Net Revenue Retention (NRR) 2026: Benchmarks + Free Calculator

By Adam Petty

Updated

July 20, 2026

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