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How to calculate net revenue retention (NRR) in Excel and Google Sheets
Topic:SaaS metricsExcel & Google Sheets
=(B2+B3-B4-B5)/B2✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Metric | MRR ($) |
| Starting MRR | 100000 |
| Expansion MRR | 18000 |
| Churned MRR | 8000 |
| Contraction MRR | 3000 |
=(B2+B3-B4-B5)/B2→1.07
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Step by step
- 1Label rows in column A: 'Starting MRR' (A2), 'Expansion MRR' (A3), 'Churned MRR' (A4), 'Contraction MRR' (A5). Enter values in column B.
- 2Starting MRR is the total MRR from existing customers at the beginning of the period.
- 3Expansion MRR is additional revenue from upgrades and upsells by those same customers.
- 4Churned MRR is revenue lost from customers who cancelled. Contraction MRR is revenue lost from downgrades.
- 5Enter =( B2+B3-B4-B5)/B2 in B6. Format as percentage. A result above 100% means the cohort is growing without new logo acquisition.
Tips
- Measure NRR on a fixed cohort of customers present at the start of the period. Do not include any new customers acquired during the month — that would make this a different metric.
- NRR above 120% is exceptional (Snowflake, Datadog territory). 100–110% is healthy SaaS. Below 100% means churn and contraction exceed expansion.
- Calculate NRR monthly and track it as a trailing 12-month figure for investor presentations, since single-month NRR can be volatile.
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Frequently asked
What is the difference between NRR and GRR?
GRR (Gross Revenue Retention) is capped at 100% — it only measures churn and contraction, excluding expansion. NRR can exceed 100% because it adds expansion revenue.
Should I calculate NRR on MRR or ARR?
Either works if used consistently. MRR-based NRR is more granular and catches changes sooner. ARR-based NRR is common in investor reporting for annual-contract businesses.
Why is NRR sometimes called NDR?
NDR stands for Net Dollar Retention — the same formula with 'dollar' emphasizing the revenue (not customer count) basis. The terms are interchangeable.
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