Formulas used

  • Ending MRR = starting MRR + new + expansion − contraction − churned.
  • Revenue churn = (contraction + churned) ÷ starting MRR.
  • Net revenue retention (NRR) = (starting MRR + expansion − contraction − churned) ÷ starting MRR. New customers are left out.
  • Gross revenue retention (GRR) = (starting MRR − contraction − churned) ÷ starting MRR. Expansion is left out, so 100% is the ceiling.
  • Customer churn = customers lost ÷ customers at the start. If the period is a month, the annual equivalent compounds: 1 − (1 − monthly churn)^12.

Note: These are operating metrics, and companies define them in slightly different ways, for example which customers count as "starting" and over what period. Use the same definitions every time you compare. The guides to net revenue retention, gross revenue retention and churn rate explain each one with worked examples.