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MetricsSaaS

Net Revenue Retention (NRR)

A metric that measures revenue from existing customers including expansion, contraction, and churn.

NRR (also called Net Dollar Retention or NDR) measures the percentage of revenue retained from existing customers over a period, including upsells and expansions but accounting for churn and downgrades. NRR > 100% means existing customers are growing faster than they churn — the business can grow even without new logos. Best-in-class B2B SaaS companies target NRR of 120%+. PMMs drive NRR through expansion messaging, customer marketing, and ensuring onboarding leads to deep product adoption.
Related terms
Churn Rate

The percentage of customers or revenue lost over a given period.

Customer Lifetime Value (LTV)

The total revenue a company can expect from a single customer account over the life of the relationship.

Annual Recurring Revenue (ARR)

The predictable, recurring revenue a SaaS business earns annually from active subscriptions.

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