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.
| Segment | P25 | P50 | P75 | Notes |
|---|---|---|---|---|
| B2B SaaS (SMB) | 85–90% | 90–95% | 95–98% | — |
| Mid-market/Enterprise | 90–93% | 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
Churn rate measures how much customers or revenue you lose. Learn logo vs revenue churn formulas, benchmarks, and reduction tactics.
- 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.
Related templates
- NRR Improvement Playbook
A template for expansion plays, risk scoring, and renewal review to improve NRR.
- Pricing & Packaging Review Template
A template to analyze packaging tiers, limits, and upgrade paths to improve ARPA and expansion.
- Customer Health Score Template
Template to define health signals and playbooks to prevent churn and contraction.
- Cohort Retention Template
Template to track cohort retention curves and identify retention drop-off points.