NRR calculator
The short answer
This calculator divides the ending MRR of a starting cohort by the MRR that cohort paid at the start. The formula is starting MRR, plus expansion, plus reactivation, minus contraction, minus churn, divided by starting MRR. New customers stay out of that numerator. Gross revenue retention, which leaves expansion out, is printed under the result.
How to use it
The fields open on the sample cohort. Those dollars are example data for a fictional product. Replace them. The headline is NRR. Under it: GRR, and the rate if new MRR is in the numerator.
Leave reactivation at 0 and new MRR at 0 for the base reading. The guide’s other readings use reactivation of 960 and new MRR of 700. Both figures are sample data.
The same cohort is in the NRR template (CSV).
The formula
NRR = (starting MRR + expansion + reactivation − contraction − churn) / starting MRR.
GRR = (starting MRR − contraction − churn) / starting MRR.
On the sample fields, with reactivation at $0, that is ($10,000 + $2,960 − $400 − $2,000) / $10,000 = 105.6%. GRR on the same fields is 76.0%. Those figures are sample data.
FAQ
How do you calculate NRR?
Divide the ending MRR of the customers you already had by the MRR those same customers paid at the start. In movement form that is starting MRR, plus expansion, plus reactivation, minus contraction, minus churn, divided by starting MRR.
Why is new MRR left out?
NRR is what happened to the group you already had. A customer who shows up later is a different group. The form prints a second rate if you put new MRR in the numerator. That rate is not NRR.
What is the difference between NRR and GRR?
GRR leaves expansion out. It is starting MRR, minus contraction, minus churn, divided by starting MRR. On the sample cohort, with reactivation at $0, NRR is 105.6% and GRR is 76.0%. Those percentages are sample data.
Are the starting numbers real?
No. They are the SAMPLE year from the NRR guide, a fictional product. Starting MRR on that sheet is $10,000. Replace the fields with your own.