Gross Revenue Retention (GRR)
Short answer
Gross Revenue Retention (GRR) measures the percentage of recurring revenue you retained from existing customers — counting only churn and downgrades. Unlike NRR, it excludes expansion, so it is capped at 100% and shows pure customer-base durability.
Formula
GRR = (Starting MRR − Downgrade − Churn) / Starting MRR
Take the recurring revenue you started the period with. Subtract downgrades and churn only — do NOT add expansion. Divide by the starting revenue. Multiply by 100. The result is the percent of customer revenue you retained on a like-for-like basis.
Why it matters
GRR strips out the expansion makeup that can hide weak underlying retention in the NRR number. A SaaS company with 130% NRR and 80% GRR is leaning heavily on a small cohort of fast-expanding customers — risky concentration. The same NRR with 95% GRR signals broad-based durability. Institutional investors look at both side-by-side; the gap between them tells you how dependent growth is on a few accounts.
Benchmarks
People also ask
Common questions about Gross Revenue Retention (GRR)
What is Gross Revenue Retention (GRR)?+
Gross Revenue Retention (GRR) measures the percentage of recurring revenue you retained from existing customers — counting only churn and downgrades. Unlike NRR, it excludes expansion, so it is capped at 100% and show…
How is Gross Revenue Retention (GRR) calculated?+
Take the recurring revenue you started the period with. Subtract downgrades and churn only — do NOT add expansion. Divide by the starting revenue. Multiply by 100. The result is the percent of customer revenue you retained on a like-for-like basis.
What is a good Gross Revenue Retention (GRR)?+
A healthy gross revenue retention (grr) is typically around > 95% — best-in-class. Specific targets vary by industry and stage; check our benchmarks above for your sector.
Why does Gross Revenue Retention (GRR) matter?+
GRR strips out the expansion makeup that can hide weak underlying retention in the NRR number. A SaaS company with 130% NRR and 80% GRR is leaning heavily on a small cohort of fast-expanding customers — risky concentration.
See your business's gross revenue retention (grr).
Paste your numbers and CFO Grade computes this — plus 23 other ratios — in seconds, with your industry's benchmark already loaded.
Related concepts
Where this matters most
See Gross Revenue Retention (GRR) in the context of saas & software.
Industry-specific benchmarks, common pitfalls, and what lenders look for in this sector.