Net revenue retention calculator

A single NRR figure can look healthy while the customer base is quietly shrinking, because a few large expansions cover a lot of churn. This calculator measures a fixed cohort, breaks the movement into expansion, contraction, and churn, and reports GRR next to NRR by segment, so you can see whether retention is strong or just expansion-heavy.

Formats:
CSV + web view
Sections:
5
Updated:

What you get

  • A cohort calculator by segment for NRR and GRR with all movements shown
  • A customer-level input table for classifying each account's movement
  • Formulas in plain arithmetic with a worked segment example
  • A classification checklist for expansion, contraction, and churn
  • Guidance on reading NRR and GRR together

Who it's for

  • CS ops leaders reporting retention by segment
  • RevOps analysts preparing board retention metrics
  • Finance partners reconciling retention to reported ARR

What's inside

  1. 1

    Cohort NRR and GRR by segment

    8 columns, 4 worked example rows

  2. 2

    Formulas

    3 columns, 5 worked example rows

  3. 3

    Customer-level inputs

    6 columns, 4 worked example rows

  4. 4

    Classification rules

    8-point checklist

  5. 5

    Reading NRR and GRR together

    Guidance notes

Preview of section 1

Cohort NRR and GRR by segment

Worked example: trailing twelve months. Cohort is customers active twelve months ago.

SegmentStarting ARRExpansionContractionChurnEnding ARRNRRGRR
SMB4,000,000400,000200,000600,0003,600,00090.0%80.0%
Mid-market6,000,000900,000240,000360,0006,300,000105.0%90.0%

The preview shows part of section 1. The full template has all 5 sections (4 not previewed here), with blank rows ready to fill in. Download the full template

How to use it

  1. 1

    Fix the cohort first

    The cohort is every customer active at the start of the measurement period, usually twelve months ago. Customers acquired during the period are excluded entirely, including any expansion they have made.

  2. 2

    Classify every customer's movement

    Compare each cohort customer's ARR today with twelve months ago and label the difference as expansion, contraction, churn, or flat. Churn is only used when ARR goes to zero.

  3. 3

    Report GRR next to NRR

    Never show NRR alone. GRR shows how much of the base you kept before expansion; if GRR is falling while NRR holds, you are relying on a shrinking set of customers to grow.

  4. 4

    Cut by segment

    Segments usually retain very differently. A blended NRR can be driven almost entirely by enterprise expansion while SMB loses a fifth of its revenue each year.

Frequently asked questions

How do you calculate net revenue retention?

NRR = (Starting ARR + Expansion - Contraction - Churn) / Starting ARR, measured on customers who were active at the start of the period. With 6,000,000 starting, 900,000 expansion, 240,000 contraction, and 360,000 churn, NRR is 105%.

What is the difference between NRR and GRR?

GRR excludes expansion, so it shows how much revenue you kept from the cohort before any growth. GRR is capped at 100%; NRR is not.

Should new customers be included in NRR?

No. NRR measures a fixed cohort of customers who existed at the start of the period. Including new customers or their expansion turns NRR into a growth metric and inflates it.

Should NRR be calculated monthly or annually?

Annually on a trailing twelve-month cohort is the most common and least noisy. Monthly NRR is useful internally but is volatile and should not be annualized by simple multiplication.

Related templates

All sales ops templates