Net Revenue Retention (NRR): Definition, Meaning & Guide for Indian Businesses

NRR measures whether your existing customers are net adding revenue or net losing it. NRR > 100% means you grow even with zero new customers.

What is Net Revenue Retention (NRR)?

Net Revenue Retention = (revenue from the start cohort at end of period) ÷ (revenue from the start cohort at start of period). It includes upgrades and expansion (positive) and downgrades and churn (negative). A SaaS business with 110% NRR doubles its existing customer revenue every ~7 years even without acquiring new logos. World-class B2B SaaS targets >120% NRR. For Indian SMB SaaS, 100-110% is achievable; below 90% means existing customers are leaking faster than the team realises.