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How to calculate gross revenue retention (GRR) in Excel and Google Sheets
Topic:SaaS metricsExcel & Google Sheets
=(B2-B3-B4)/B2✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Metric | MRR ($) |
| Starting MRR | 100000 |
| Churned MRR | 6000 |
| Contraction MRR | 2500 |
=(B2-B3-B4)/B2→0.915
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Step by step
- 1In column A, label three rows: 'Starting MRR' (A2), 'Churned MRR' (A3), 'Contraction MRR' (A4). Enter values in column B.
- 2Starting MRR is the total recurring revenue from the customer cohort at period start.
- 3Churned MRR is the full recurring revenue lost from customers who cancelled entirely.
- 4Contraction MRR is revenue lost from downgrades only — customers who stayed but reduced their plan.
- 5Enter =(B2-B3-B4)/B2 in B5. Format as percentage. The result will always be ≤ 100% by definition.
Tips
- GRR is always between 0% and 100% — if your formula exceeds 100%, you have included expansion revenue, which belongs in NRR, not GRR.
- A GRR above 90% is the benchmark for healthy SMB SaaS; 95%+ is expected for mid-market and enterprise where switching costs are higher.
- Track GRR alongside NRR. If NRR is high but GRR is low, growth is expansion-dependent and the business is more fragile than the headline NRR suggests.
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Frequently asked
Why does GRR exclude expansion?
GRR is specifically designed to isolate the revenue floor — how much you retain purely from keeping customers on their current plans. Expansion is a separate, additive growth lever.
Is 85% GRR considered good?
It depends on the segment. 85% is typical for high-velocity SMB SaaS with higher natural churn. For mid-market or enterprise SaaS, 85% GRR would be a concern.
How do I use GRR in a revenue forecast?
Multiply starting ARR by your GRR to estimate the revenue floor from existing customers. Then add expected new ARR and expansion ARR to build a full forecast.
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