Net Revenue Retention
NRR
How much revenue you retain from existing customers after expansions, contractions, and churn.
Definition
Net Revenue Retention (NRR), also called Net Dollar Retention (NDR), measures the percentage of revenue retained from an existing customer cohort over a period after accounting for expansions (upsells, cross-sells), contractions (downgrades), and churn. An NRR above 100% means your existing customer base is growing revenue even without adding new customers — the hallmark of a truly compounding business.
Why It Matters
NRR above 100% is one of the most powerful signals in SaaS. It means your product becomes more valuable to customers over time. Best-in-class companies like Snowflake have historically posted NRR above 150%. NRR is also a direct input to long-term revenue forecasts and valuation multiples.
Example
Start the year with $1M ARR from existing customers. After churn ($50K) and expansions (+$200K), you end with $1.15M — that is 115% NRR.