Net Revenue Retention
Net Revenue Retention: Net revenue retention (NRR) measures the percentage of recurring revenue retained from existing customers over a period, including expansion, contraction, and churn. An NRR above 100% means existing customers are spending more over time.
NRR is calculated as: (Starting MRR + Expansion - Contraction - Churn) / Starting MRR. It captures the full picture of how your existing customer base is performing. An NRR of 120% means that for every $100 of revenue you started with, you ended with $120 from those same customers — even after accounting for downgrades and cancellations.
Pricing directly affects NRR. Well-designed pricing creates natural expansion (through usage growth, seat growth, or tier upgrades) while minimizing contraction (through fair value delivery at each price point).
Why It Matters for B2B SaaS
NRR above 100% means you can grow revenue even without acquiring new customers — your existing base is expanding. Top-performing SaaS companies achieve 120-140% NRR. Pricing is one of the primary levers: value metrics that scale with customer success, upgrade paths that feel natural, and pricing that reflects the value delivered all drive higher NRR.
Frequently Asked Questions
What is a good net revenue retention rate for B2B SaaS?
For B2B SaaS companies, 100-110% NRR is acceptable, 110-130% is strong, and above 130% is excellent. Enterprise-focused companies with usage-based pricing components typically achieve the highest NRR. If your NRR is below 100%, you're losing more revenue from existing customers than you're gaining through expansion — a structural problem that requires attention.
Related Terms
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