GRR vs NRR
What is the difference between GRR and NRR? Side-by-side definitions, formulas, and benchmarks for two of the most-watched SaaS metrics.
Definitions
What is GRR?
GRR is gross revenue retention, the percentage of recurring revenue retained from existing customers over a period, counting downgrades and churn but excluding expansion revenue.
What is NRR?
NRR is net revenue retention, the percentage of recurring revenue retained from existing customers over a period, including expansion, downgrades, and churn. NRR above 100% means expansion outpaces losses.
GRR vs NRR at a Glance
| GRR | NRR | |
|---|---|---|
| Category | Metrics | Metrics |
| Formula | GRR = (Starting MRR - Downgrades - Churned MRR) / Starting MRR | Net Revenue Retention % = (Starting MRR + Existing Customer Upgrades - Existing Customer Downgrades - Existing Customer Churn) / Starting MRR |
| Benchmarks | good: 90%; great: 95% | best: 120%; good: 100%; great: 110% |
| Calculator | GRR calculator | NRR calculator |
When Each Matters
GRR and NRR answer different questions. GRR is gross revenue retention, the percentage of recurring revenue retained from existing customers over a period, counting downgrades and churn but excluding expansion revenue. NRR is net revenue retention, the percentage of recurring revenue retained from existing customers over a period, including expansion, downgrades, and churn. NRR above 100% means expansion outpaces losses. In practice, healthy SaaS operators watch both, because each one catches failure modes the other misses.