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 agencies: 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.
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What is net revenue retention (NRR)?
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.
How do you calculate net revenue retention?
Take starting MRR, add expansion, subtract contraction and churn, divide by starting MRR, and multiply by 100.
What is a good NRR for an agency?
Anything above 100% means the existing client base grows on its own; consistently above 100% is a strong sign of account health.
What is the difference between NRR and gross retention?
Gross retention ignores expansion and caps at 100%; NRR includes upsell and expansion, so it can exceed 100%.