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GRR (Gross Revenue Retention)

GRR (Gross Revenue Retention) is the share of a cohort's recurring revenue retained after churn and contraction, with expansion excluded. It can never exceed 100%, which makes it the honest measure of how leaky the bucket is.

Formula

GRR = (starting MRR − churn − contraction) ÷ starting MRR × 100

Worked example

A cohort starting at $150,000 MRR that loses $6,000 to churn and $1,500 to downgrades has GRR of 95% — regardless of how much expansion the same cohort generated.

NRR can hide a retention problem: heavy expansion from a few whales can hold NRR above 100% while dozens of customers quietly leave. GRR strips that out. Strong enterprise SaaS holds GRR above 90–95%; below 80% the core product is not sticking.

Diligence teams almost always ask for GRR alongside NRR for exactly this reason — present both, by segment, and the conversation goes faster.

Compute it: NRR calculator (computes GRR too)

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