Method and assumptions
NRR excludes new customers and isolates what happens to the starting revenue cohort. It is most useful when the cohort and period are consistent.
NRR = (starting MRR + expansion - contraction - churn) ÷ starting MRR.
Common questions
Does NRR include new customers?
No. Excluding new sales makes NRR a measure of existing customer expansion and retention.
Can NRR exceed 100%?
Yes. Expansion from existing customers can exceed contraction and churn.
Independent planning calculator. Not financial, tax, legal or investment advice.