How much recurring revenue can you retain from the customers you already have, before adding new ones? The Gross Revenue Retention (GRR) answers: it measures the percentage of MRR that remains after subtracting the losses from cancellation (churn) and downgrade (contraction). Unlike the Net Revenue Retention, the GRR does not include expansion and cannot exceed 100%: it is the most honest and severe measure of a SaaS's ability not to lose revenue. This calculator determines it from starting MRR, churn and contraction.

What Gross Revenue Retention is

The Gross Revenue Retention is the percentage of recurring revenue a company maintains from its existing customer base in a period, without counting the expansion revenue (upsell, upgrade). You start from the MRR at the beginning of the period, subtract the losses (churn plus contraction) and divide by the starting MRR. With 100,000 of starting MRR and 12,000 of losses, the GRR is 88%. It is the "survival" rate of the revenue: how much of the starting base holds without counting new growth.

GRR and Net Revenue Retention (NRR)

The key difference with the Net Revenue Retention is expansion. The NRR adds the expansion MRR from existing customers to the calculation, so it can exceed 100% (a healthy SaaS has NRR above 100%, it grows even just on the existing base). The GRR instead ignores expansion and stops at 100%: it shows the pure retention without the "trick" of expansion that can mask a high churn. A high GRR with a much higher NRR is the ideal profile: you retain well and grow on existing customers.

How the GRR is calculated

The formula is: GRR = (starting MRR − churn − contraction) / starting MRR × 100. The churn is the MRR lost from customers who cancel; the contraction is the MRR lost from those who stay but downgrade. The sum of the two are the losses from the existing base. With 100,000 of starting MRR, 8,000 of churn and 4,000 of contraction: (100,000 − 12,000) / 100,000 = 88%. It is a simple calculation, but it requires measuring churn and contraction correctly and separately.

The retained MRR

The retained MRR is how much recurring revenue of the starting base survives at the end of the period, before counting new customers or expansion. With 100,000 starting and 12,000 of losses, 88,000 remain. It is the "solid" base on which to build growth: if each period you start with less retained revenue, the growth from new customers must first fill the losses, like filling a leaky bucket. The retained MRR is the foundation on which expansion and acquisition add.

The revenue churn

The revenue churn is the complement of the GRR: the percentage of revenue lost from the existing base (churn plus contraction on the starting MRR). With a GRR of 88%, the revenue churn is 12%. It is the direct indicator of how much revenue "escapes" each period. Be careful not to confuse it with the customer churn (rate of lost customers): the revenue churn weighs customers by their value, so losing a big customer counts more than losing a small one. For a SaaS, the revenue churn is more significant than the customer churn.

How the calculator works

Enter the starting MRR, the churned MRR and the contraction MRR of the period. The calculator returns the retained MRR, the total losses, the Gross Revenue Retention and the revenue churn, with an assessment. It is the quickest way to understand how well you retain revenue from the existing base, regardless of growth. Try different churn and contraction levels to see the impact on the GRR and understand where to act.

The values you need

You need three numbers for the same period (month or year). The starting MRR, the recurring monthly revenue at the beginning of the period (only from the existing base). The churn MRR, the revenue lost from customers who canceled. The contraction MRR, the revenue lost from customers who stayed but reduced the plan. Do not include the new MRR or the expansion: the GRR looks only at what happens to the starting base. Most SaaS analytics tools provide these components.

Interpreting the GRR

Benchmarks for the Gross Revenue Retention (they vary by segment):

Enterprise B2B companies aim for GRR above 90%; for the SMB and self-service segment a lower GRR is common but should be watched.

GRR and NRR compared

The two revenue retention metrics, with crucial differences:

Looking only at the NRR can hide a high churn offset by expansion: the GRR reveals the real health of the base.

Example: same base, different losses

With a starting MRR of 100,000, how the GRR changes as the total losses vary:

Each point of GRR lost requires more acquisition and expansion just to offset: raising the GRR is the most efficient growth lever.

Why the GRR is so important

The GRR measures the solidity of the revenue: how "sticky" your product is and how much value it creates for existing customers. A high GRR means customers stay and pay, reducing the pressure on acquisition. It is much used by investors and boards because, unlike the NRR, it cannot be inflated by expansion: if the GRR is low, you have a product or fit problem that upselling can only temporarily mask. Improving the GRR — by reducing churn and contraction — is often more efficient than pushing acquisition.

What the calculation does not consider

The GRR captures a single period: it should be looked at over time and consistently (monthly or annual, without mixing them). It does not consider the expansion (for that you need the NRR) or the composition of the churn (losing a big customer or many small ones has different implications). It does not distinguish between voluntary and involuntary churn (e.g. expired cards), which are addressed differently. It is a revenue retention metric, to be read together with NRR, customer churn and the other unit economics.

Common mistakes

• Confusing GRR and NRR: the GRR does not include expansion and does not exceed 100%.
• Including the new MRR or the expansion in the calculation (the GRR looks only at the starting base).
• Mixing different periods (monthly vs annual GRR).
• Confusing revenue churn with customer churn (the first weighs the value).
• Looking only at a high NRR, ignoring a low GRR that signals a product problem.

How to use the calculator

Enter starting MRR, churn and contraction. Read the GRR and the revenue churn to understand how much revenue you retain. Compare the GRR with the benchmarks of your segment and with the history. Simulate reducing the churn or the contraction to see how much the GRR rises. Read the GRR together with the NRR: a high GRR and a much higher NRR is the ideal profile. Monitor the GRR over time, not a single period, to catch the health trends of the base.

Practical example

Your SaaS company starts the month with 100,000 of MRR and, from the existing base, loses 8,000 to churn (customers who cancel) and 4,000 to contraction (downgrade). The calculation gives a retained MRR of 88,000, total losses of 12,000, a Gross Revenue Retention of 88% and a revenue churn of 12%, with the verdict "good: contained losses, solid base". You retain 88% of the revenue from the existing base: solid, but with room to approach the 90%+ benchmark by reducing churn and contraction. Enter your numbers for your real situation. The GRR captures a period and measures the pure revenue retention, without expansion; it should be read over time and together with the NRR and the other unit economics. It is an informational estimate.

Frequently asked questions

What is Gross Revenue Retention (GRR)?

It is the percentage of recurring revenue a company retains from the existing customer base, without counting expansion. You start from the starting MRR, subtract churn and contraction, divide by the starting MRR. With 100,000 and 12,000 of losses, the GRR is 88%. It cannot exceed 100%.

How is the GRR calculated?

GRR = (starting MRR − churn − contraction) / starting MRR × 100. With starting MRR 100,000, churn 8,000 and contraction 4,000: (100,000 − 12,000) / 100,000 = 88%. You do not include new MRR and expansion.

What is the difference between GRR and NRR?

The NRR (Net Revenue Retention) includes the expansion (upsell) from existing customers, so it can exceed 100%. The GRR ignores expansion and stops at 100%: it measures the pure retention. Looking only at the NRR can hide a high churn masked by expansion.

What is contraction?

It is the MRR lost from customers who stay but reduce their spending (downgrade to a lower plan, fewer seats). It is different from churn (customers who leave entirely). Both are losses from the existing base and reduce the GRR.

What is a good GRR?

In SaaS: above 90% excellent, 85-90% good, 75-85% acceptable, below 75% problematic. Enterprise B2B companies aim for over 90%; in the SMB and self-service segment a lower GRR is common but should be monitored. It varies a lot by price and type of customer.

What is the difference between revenue churn and customer churn?

The revenue churn is the percentage of REVENUE lost (weighs customers by their value); the customer churn is the percentage of CUSTOMERS lost (counts them one by one). Losing a big customer has a high revenue churn but a customer churn of just one. For a SaaS the revenue churn counts more.

Why can the GRR not exceed 100%?

Because it measures only what happens to the starting base, which can only stay the same (no losses, GRR 100%) or shrink (with churn and contraction, GRR below 100%). The expansion, which could bring it above 100%, is excluded by definition: it is what distinguishes the GRR from the NRR.

Why is the GRR important for investors?

Because it cannot be inflated by expansion: it shows the true "stickiness" of the product and the solidity of the base. A low GRR signals a product or fit problem that upselling can only temporarily mask in the NRR. It is a revenue-quality metric hard to embellish.

How do you improve the GRR?

By reducing churn and contraction: better onboarding, proactive customer success, a stickier product integrated into the customer's workflows, management of at-risk customers, offers to avoid downgrades. Improving the GRR is often more efficient than pushing only acquisition.

Should I calculate the GRR monthly or annual?

Both are used, but they should not be mixed: choose a period and be consistent. The annual GRR is more stable and used for comparisons and reporting; the monthly one catches the trends faster. The important thing is to always compare GRR of the same period.

Is the GRR enough to assess the health of a SaaS?

No, it is one piece. It should be read together with the NRR (which adds expansion), the customer churn, the LTV:CAC and the CAC payback. A high GRR with a much higher NRR is the ideal profile; a low GRR is an alarm even if the NRR looks good thanks to expansion.

Is it financial advice?

No, it is an informational tool that calculates the gross revenue retention. It captures a single period, does not distinguish voluntary/involuntary churn and should be read over time and together with the other SaaS unit economics.

Updated July 2026