GRR vs NRR 2026 Gross vs Net Revenue Retention

Same starting customer base, two retention metrics, often very different numbers. GRR is the floor (caps at 100%). NRR adds expansion (can exceed 100%). The gap between them is the expansion mask, and it is what investors increasingly probe.

Inputs

Starting MRR ($)

Churn MRR ($) (lost customers)

Contraction MRR ($) (downgrades)

Expansion MRR ($)

GRR

92.0%

Floor. Caps at 100%.

NRR

115.0%

Includes expansion.

Expansion mask

+23.0 pts

NRR - GRR

Retention read

Healthy retention

Solid retention floor with measurable expansion. Mid-market to growth-stage healthy.

The two formulas side by side

GRR (Gross Revenue Retention)

(Start - Churn - Contraction) / Start

Caps at 100%. Measures revenue retained excluding expansion. The floor of your retention. Cannot be improved by upselling; only by reducing churn and downgrades.

NRR (Net Revenue Retention)

(Start - Churn - Contraction + Expansion) / Start

Can exceed 100%. Adds expansion revenue back in. Reflects the full economic value of the existing customer base. Top-quartile public SaaS sits at 115%+ NRR.

Worked example: the expansion mask

A Series B SaaS reports 115% NRR. Sounds healthy. But the underlying numbers tell a more complicated story:

Starting MRR	$1,000,000
Churn MRR (lost customers)	-$60,000
Contraction MRR (downgrades)	-$20,000
Expansion MRR	+$230,000
GRR	92.0%
NRR	115.0%

GRR of 92% means 8% of existing revenue is lost every month before any expansion kicks in. NRR of 115% only looks good because $230K of expansion masks the $80K of loss. If the expansion motion stops (because the largest expansion customers hit their seat ceiling, because a competitor offers a better tier, because the macro tightens), NRR will collapse toward GRR. The 23-point expansion mask is the risk.

2026 benchmarks by stage

Stage	GRR (median range)	NRR (median range)	Healthy mask
Seed	80-95%	90-110%	5-15 pts
Series A	85-95%	100-120%	10-25 pts
Series B	88-96%	105-130%	15-35 pts
Series C	90-97%	110-135%	15-40 pts
Growth / Pre-IPO	92-98%	112-140%	15-45 pts

Source: KeyBanc Capital Markets SaaS Survey 2025-2026, OpenView SaaS Benchmarks 2026, Bessemer State of the Cloud. The "healthy mask" column is the expansion contribution range that does not signal over-reliance on upsell.

NRR Calculator Churn Rate Logo vs Revenue 2026 Benchmarks

Frequently Asked Questions

What is GRR (Gross Revenue Retention)?

GRR measures the percentage of starting revenue retained from existing customers excluding any expansion. It is capped at 100%. Formula: GRR = (Starting MRR - Churn - Contraction) / Starting MRR. It represents the floor of your retention: how much of last period's revenue you protected without any upselling.

What is NRR (Net Revenue Retention)?

NRR measures starting revenue retained including expansion. It can exceed 100%. Formula: NRR = (Starting MRR - Churn - Contraction + Expansion) / Starting MRR. Above 100% means your existing customer base generates more revenue this period than last, without any new customer acquisition.

Which retention metric matters more to investors?

Increasingly GRR. NRR can hide a churn problem if expansion is large enough to mask it (a company at 110% NRR could have 80% GRR if expansion is 30% and churn is 20%). Public SaaS company disclosures now commonly report both. Investors at Series B onward specifically ask for GRR because it is harder to manipulate and signals whether the underlying customer base is durable independent of upsell efforts.

What is the expansion mask?

The expansion mask is the gap between NRR and GRR. A company with 92% GRR and 115% NRR has a 23-point expansion mask. The 23 points of expansion are papering over 8 points of revenue loss. If the expansion motion stops working (or revenue is concentrated in a few large expansions that could reverse), NRR will fall back toward GRR fast.

What is the 2026 benchmark for GRR and NRR?

By stage (median benchmarks compiled from KeyBanc Capital Markets SaaS Survey 2025-2026 and OpenView SaaS Benchmarks 2026): GRR Seed 80-95%, Series A 85-95%, Series B 88-96%, Series C 90-97%, Growth 92-98%. NRR: Seed 90-110%, Series A 100-120%, Series B 105-130%, Series C 110-135%, Growth 112-140%. Top-quartile companies sit at the high end of each range.