Definition
Net revenue retention asks: of the recurring revenue you had from a cohort a year ago, how much do you have now after upgrades, downgrades, and cancels? Above 100% means the base grows without new logos. Below 100% means you must acquire just to stand still.
In the room
How the word shows up in a real conversation.
Last year’s cohort was ₹10 lakh ARR. They expanded by ₹2 lakh, contracted ₹0.5 lakh, and churned ₹1 lakh. NRR is 105%. The company can grow even on a quiet acquisition month.
Formula
NRR = (starting MRR + expansion − contraction − churn) ÷ starting MRR
Common mistake
Mixing new-logo revenue into NRR. New customers belong in new MRR, not retention.
See also
Churn rate
Percentage of customers who stop using a service over a given period.
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Monthly Recurring Revenue (MRR)
Predictable subscription revenue normalised to a month, excluding one-off fees.
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Annual Recurring Revenue (ARR)
Subscription revenue run-rate for a year, usually MRR × 12 for monthly books.
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Customer lifetime value (CLV)
Predicted revenue a customer will generate over their entire relationship.
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