Net Revenue Retention (NRR), also called Net Dollar Retention, measures what percentage of last period’s MRR from existing customers you retain after accounting for all changes: upgrades (expansion), downgrades (contraction), and cancellations (churn). An NRR above 100% means your existing customer base is growing in revenue even without new customer acquisition. An NRR below 100% means the base is shrinking.
NRR = (Starting MRR + Expansion MRR – Contraction MRR – Churned MRR) / Starting MRR x 100. In Zoho Billing, all the components of this formula are tracked automatically, and the dashboard displays NRR for the selected period. A world-class B2B SaaS company typically targets NRR of 110-130%, meaning revenue from existing customers grows 10-30% per year through upsells alone.
A high NRR means the business can grow revenue even if sales acquisition slows down temporarily, since existing customers are generating more revenue over time. This is why investors and acquirers weight NRR heavily in SaaS valuations. Zoho Billing’s revenue reporting gives you real-time NRR visibility to track whether your customer success and expansion revenue motions are effective.
Gross Revenue Retention (GRR) measures only retained revenue after deducting cancellations and downgrades, without counting expansions. NRR includes expansion revenue (upgrades, add-on purchases). GRR can never exceed 100%, while NRR can. A business with GRR of 90% and NRR of 110% is retaining most of its base while growing existing accounts significantly through upsell.
Yes. Zoho Billing’s revenue analytics dashboard displays NRR (or Net Dollar Retention) alongside MRR, ARR, churn rate, and other subscription metrics. The calculation uses the MRR component data (new, expansion, contraction, churn) that Zoho Billing tracks for every subscription change, so the metric is always current without manual calculation.
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