Net revenue retention (NRR)
also known as NRR · net dollar retention
The percentage of recurring revenue retained from existing clients over time, including expansion and minus churn. Above 100% means you grow even without new clients.
For example, if your clients were worth $50,000 in MRR a year ago and that same group now pays $55,000 - thanks to upgrades and added scope, even after some downgrades and churn - your NRR is 110%. The base grew by itself.
Why it matters to your firm: NRR above 100% means expansion is outrunning churn, so revenue compounds from the clients you already have. It is one of the clearest signals of a healthy agency, and a strong number makes growth far less dependent on constant new-business hustle.
Above 100% means the existing base grows on its own; a sustained 100-110%+ is a strong, healthy NRR for an agency.
NRR = (starting MRR + expansion − contraction − churn) ÷ starting MRR × 100
Only counts the existing client base - new clients are excluded.
Net revenue retention calculator
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