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

10 min read

Bright high-key motion-blur wildflower meadow in lavender, yellow and green

Last reviewed and updated: October 24, 2026.

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%

About the author

Adam Petty

Founder, Flowjam

Adam is the founder of Flowjam, where he helps startups turn ideas into launch videos, product demos, and ads with AI video. He writes about AI video production, creative workflows, and go-to-market for early-stage teams.

x.com/theadampetty · flowjam.com