Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing customers over a given period, factoring in expansions (upsells, cross-sells), downgrades, and churn.

An NRR above 100% means your existing customers generate more revenue over time than you lose — a strong signal of product-market fit and growth efficiency.

Example: If you start the month with $100,000 MRR, gain $15,000 from expansions, and lose $8,000 from churn and downgrades, your NRR is 107%.