Gross Revenue Retention (GRR)

GRR measures retained revenue excluding expansion. Learn how to compute it and improve it.

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Definition

Gross Revenue Retention (GRR) is the percentage of starting recurring revenue retained from existing customers after churn and contraction—excluding expansion.

Answer-first summary

Gross Revenue Retention (GRR): Gross Revenue Retention (GRR) is the percentage of starting recurring revenue retained from existing customers after churn and contraction—excluding expansion.

Formula

GRR (%)

GRR = (Starting MRR - Churn - Contraction) / Starting MRR

  • Starting MRR: Existing customer MRR at period start
  • Churn: Lost MRR from cancellations
  • Contraction: Lost MRR from downgrades

Start $100k, churn $6k, contraction $4k → GRR=90%.

Directional GRR Benchmarks

Benchmarks vary widely by industry, ACV, go-to-market motion, geography, and measurement method. Treat these as directional ranges, not targets.

SegmentP25P50P75Notes
B2B SaaS (SMB)85–90%90–95%95–98%
Mid-market/Enterprise90–93%93–96%96–99%

Sources

  • Directional industry ranges (compile from public SaaS benchmark reports)

How to improve

  • Reduce involuntary churn (dunning, billing).
  • Fix value gaps causing downgrades.
  • Improve onboarding and product adoption.

Common pitfalls

  • Accidentally including expansion.
  • Mixing cohorts with different pricing terms.

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FAQ

NRR vs GRR—should I optimize both?
Yes. GRR protects the base; NRR captures expansion. High NRR with weak GRR can hide churn risk.
Is GRR more important than logo retention?
They answer different questions. Track both to understand revenue vs customer count retention.

Topic hub

Explore the full cluster for stronger context, benchmarks, templates, and comparisons.

Related metrics

  • Net Revenue Retention (NRR)

    NRR measures revenue expansion vs churn from existing customers. Learn the formula, benchmarks, and levers to increase NRR.

  • Churn Rate

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  • Customer Lifetime Value (LTV)

    Learn LTV, how to calculate it safely, common pitfalls, and how to increase it.

  • Logo Retention

    Logo retention measures how many customers stay. Learn formula, benchmarks, and reduction tactics for churn.

  • Expansion MRR

    Expansion MRR is growth from existing customers. Learn what counts and how to drive it.

  • Contraction MRR

    Contraction MRR is recurring revenue lost from existing customers via downgrades. Learn causes and fixes.

Related calculators

  • Churn Rate Calculator

    Calculate logo churn or revenue churn for a given period. Shareable inputs and tracked usage events.

  • NRR Calculator

    Calculate net revenue retention from starting MRR, expansion, contraction, and churn.

  • LTV Calculator

    Calculate LTV using ARPA, gross margin, and churn. Includes shareable inputs via URL.

  • MRR Growth Calculator

    Compute MRR growth rate over a period from starting and ending MRR.

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