GRR
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.
Also known as: Gross Revenue Retention, Gross Dollar Retention, GDR
GRR Formula
GRR = (Starting MRR - Downgrades - Churned MRR) / Starting MRR | Variable | Meaning |
|---|---|
Starting MRR | Monthly recurring revenue at the start of the period. |
Downgrades | MRR lost to existing customers reducing their spend. |
Churned MRR | MRR lost to customers who cancelled. |
How to Calculate GRR
Worked example
- Starting MRR
- $100,000
- Downgrades (contraction MRR)
- $3,000
- Churned MRR
- $5,000
- → Gross Revenue Retention
- 92%
GRR Calculator
GRR = (Starting MRR - Downgrades - Churned MRR) / Starting MRR | Variable | Meaning |
|---|---|
Starting MRR | Monthly recurring revenue at the start of the period. |
Downgrades | MRR lost to existing customers reducing their spend. |
Churned MRR | MRR lost to customers who cancelled. |
Worked example
- Starting MRR
- $100,000
- Downgrades (contraction MRR)
- $3,000
- Churned MRR
- $5,000
- → Gross Revenue Retention
- 92%
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Prefer a dedicated page? Use the GRR calculator.
GRR Benchmarks
| Segment | Level | Benchmark |
|---|---|---|
| general | good | 90% |
| general | great | 95% |
Common Mistakes with GRR
- Confusing GRR with NRR: GRR excludes expansion revenue, so it can never exceed 100% — if your retention number is above 100%, you are looking at NRR.
- Ignoring downgrades: counting only full churn overstates GRR; contraction from existing accounts belongs in the calculation.
GRR vs Related Metrics
- GRR vs NRR — how the two differ and when each matters.
GRR FAQ
What is GRR?
GRR is gross revenue retention, the share of recurring revenue kept from existing customers after downgrades and churn, ignoring any expansion. It measures how leaky the revenue base is.
How do you calculate GRR?
GRR = (Starting MRR - Downgrades - Churned MRR) / Starting MRR. Unlike NRR, upgrades and expansion revenue are excluded, so the maximum possible GRR is 100%.
What is the difference between GRR and NRR?
NRR includes expansion revenue from upsells and can exceed 100%; GRR excludes expansion and is capped at 100%. Healthy SaaS companies watch both.
More questions? See the full GRR FAQ.