Net revenue retention measures how much recurring revenue you keep and grow from existing customers over a period, including expansion, minus churn and contraction. An NRR above 100% means your existing base grows revenue even without new customers. It is a top signal of product value and durability.

NRR above 100% is the closest thing to a growth cheat code, because your existing customers fund growth without any acquisition cost. It means expansion outpaces churn. If NRR is below 100%, you are refilling a leaking bucket, and every new customer matters more. Investors weigh this heavily because it predicts durable growth.

Example:

 Existing customers start at $100,000 MRR. Over a year, they expand by $20,000 and churn $10,000. NRR is (100,000 + 20,000 - 10,000) / 100,000 = 110%.

What is a good net revenue retention rate?

 Above 100% is strong, meaning existing customers grow revenue net of churn. Best-in-class subscription businesses often reach 120% or more.

Why does NRR matter more than gross retention?

 NRR includes expansion revenue, so it shows whether your existing base is growing, not just how much you are keeping.