Net Revenue Retention (NRR) measures the percentage of recurring revenue a business keeps from its existing customer base over a period (usually a year) — accounting for churn, downgrades, and upgrades or expansion revenue from the same customers.
The formula
Unlike Gross Revenue Retention (GRR), which caps out at 100% because it only measures what's lost, NRR can exceed 100% if expansion revenue (upsells, seat growth, plan upgrades) from existing customers outpaces churn and downgrades.
Why NRR above 100% is the SaaS gold standard
A company with 110%+ NRR grows its revenue from existing customers alone, even before counting any new customer acquisition — which means growth compounds on top of a base that's already expanding, not just holding steady. Best-in-class SaaS companies target 120%+ NRR; anything below 100% means the existing customer base is shrinking in revenue terms even if logo churn looks manageable.