SaaS & retention
Gross Revenue Retention Calculator
Calculate the recurring revenue retained from an opening cohort before expansion or new-customer revenue.
Use GRR to isolate churn and contraction in a defined existing-revenue cohort. Use NRR when expansion should offset those losses.
What the result means
GRR is the percentage of opening cohort recurring revenue left after churn and contraction. It cannot exceed 100% because expansion and new customers are excluded.
The formula
((Opening revenue - churned revenue - contraction revenue) / opening revenue) * 100
Results are displayed to at most two decimal places. Calculations use the unrounded inputs.
A worked example
Put the formula to work
- Opening cohort revenue (currency per period)
- 50,000
- Revenue lost to churn (currency per period)
- 2,500
- Revenue lost to contraction (currency per period)
- 1,000
Gross revenue retention: 93%
An opening cohort of 50,000 loses 3,500 to churn and contraction, leaving 93% gross revenue retention.
How to use this calculator
- Freeze the opening cohort and its MRR or ARR basis.
- Subtract full-churn losses only once before measuring contraction.
- Subtract both losses from opening revenue.
- Divide remaining revenue by opening revenue and label the period.
Why this number matters
GRR reveals baseline retention without letting expansion hide lost recurring revenue.
Input definitions
- Opening cohort revenue (currency per period)
- Opening MRR or ARR from the same customer cohort; use one recurring-revenue basis and a positive amount.
- Revenue lost to churn (currency per period)
- Opening recurring revenue removed by full churn; do not also count it as contraction.
- Revenue lost to contraction (currency per period)
- Downgrade or seat-reduction losses from retained opening accounts.
Assumptions and limitations
- New customers and expansion are intentionally excluded.
- Cohort and revenue-basis definitions must remain consistent.
- Averages can hide severe losses in individual accounts.
Methodology
The default result and worked example use the same calculation functions as the interactive tool. The formula cannot verify the quality or scope of your source data.
Read our calculation methodology
Last updated .