Chart: Net MRR Retention
The Net MRR Retention (NRR) chart tracks the percentage of recurring revenue retained from existing subscribers, factoring in gains from expansion and reactivation and losses from contraction and churn.
For SaaS businesses, it’s one of the most telling indicators of product value and pricing alignment. An NRR above 100% means revenue from existing customers is growing, reducing reliance on new customer acquisition. It’s also a key metric for investors assessing the long-term health and efficiency of your business.
To view revenue retained excluding expansion and reactivation, use Gross MRR Retention.
If you’re new to ChartMogul, get to know how charts work.
Why is NRR a vital metric for SaaS?
Net MRR Retention shows how well you retain revenue from existing subscribers as they grow their relationship with your business. It’s an indicator of your product/service’s value and how well your pricing strategy is aligned with customers’ success. Put simply, when your customers see value in your product/service, they keep paying for it. Learn more in our SaaS Retention Report.
High NRR tells potential investors you have loyal customers and you’re able to grow revenue cost-efficiently. Successful companies have an NRR exceeding 100%. Use Benchmarks to compare your NRR to industry peers.
Chart Notes
- Excludes New Business.
- The value of Starting MRR is from subscribers with an Active or Past due subscription at the start of the period.
- Non-recurring payments do not contribute to this chart.
- When filtering by Plan > is one of, ChartMogul calculates the percentage of revenue retained when a subscriber switches plans. When the plan switch results in expansion, ChartMogul reports it as 100% of revenue retained. When the plan switch results in contraction, ChartMogul calculates the percentage of revenue retained from the subscription.
- Toggle between the default (WoW/MoM/QoQ) and year-over-year (YoY) rates. Learn more.
- Select Exclude reactivations from numerator to remove reactivated subscriptions from your retention calculation. Note: this will lower your retention numbers.
- Select Exclude MRR contraction from numerator to remove contraction MRR from your retention calculation. Note: this will raise your retention numbers.
- When a plan filter is applied, use the Subscribers leaving the segment count as drop-down to control how plan switches are counted—as full churn, proportional retention, or full retention (excluded from the calculation entirely).
Calculation
ChartMogul calculates NRR as total MRR from existing subscribers at the start of the period plus expansion and reactivation offset by contraction and churn during the period divided by total MRR from subscribers at the start of the period:
(Starting MRR + Expansion MRR + Reactivation MRR − Contraction MRR − Churn MRR) ÷ Starting MRR
Selecting Exclude reactivations from numerator removes Reactivation MRR from the formula. This will lower your retention numbers.
Selecting Exclude MRR contraction from numerator removes Contraction MRR from the formula. This will raise your retention numbers.
When a plan filter is applied, the Subscribers leaving the segment count as drop-down controls how subscribers who switch away from the filtered plan affect the formula:
| Option | How plan switches are counted | Formula |
|---|---|---|
| 100% revenue churn | The full MRR of subscribers who switched away is subtracted. | (Starting MRR + Expansion MRR + Reactivation MRR − Contraction MRR − Churn MRR − MRR Leaving Segment) ÷ Starting MRR |
| Proportional revenue retention | Upgrades out are fully retained; only the MRR difference lost on a downgrade is subtracted (e.g., the $40 difference in a $100 to $60 switch, not the full $100). | (Starting MRR + Expansion MRR + Reactivation MRR − Contraction MRR − Churn MRR − Contraction Out MRR) ÷ Starting MRR |
| Excluded from numerator (100% retention) | Subscribers leaving the segment are ignored entirely; the formula is unchanged. | (Starting MRR + Expansion MRR + Reactivation MRR − Contraction MRR − Churn MRR) ÷ Starting MRR |
Example
At the start of the month, you have $100 in MRR. During the month, one customer upgrades their subscription resulting in a $10 increase in MRR and you lose $10 to churn and $10 to contraction. Your net MRR retention rate is 90%: ($100 + $10 − $10 − $10) ÷ $100.
Retention rate for the current period
When calculating retention rate for a period that hasn’t ended yet, ChartMogul uses the following formula to estimate retention rate at the end of the period:
(total number of days in the period ÷ number of days passed in the period) × real retention rate
Chart Data
The Chart Data table for Net MRR Retention works differently from other charts. It provides the following breakdown:
- Starting MRR – The MRR at the start of each period.
- Expansion MRR – The net gain in MRR from existing customers in the period.
- Contraction MRR – The loss in MRR from subscribers who had a net decrease in MRR. Hidden when Exclude MRR contraction from numerator is selected.
- Churn MRR – The net loss of MRR from existing customers who canceled their last (or only) subscription in the period.
- Reactivation MRR – The net gain in MRR from customers who reactivated in the period. Hidden when Exclude reactivations from numerator is selected.
- MRR Entering Segment – Total MRR of the subscriptions before they transitioned into the segment. Only visible when a plan filter is applied.
- MRR Leaving Segment – Total MRR of the subscriptions before they transitioned out of the segment. Only visible when a plan filter is applied. Expand the row to reveal:
- Expansions out of segment – MRR lost when subscribers upgrade to a plan outside the filtered segment.
- Contractions out of segment – MRR lost when subscribers downgrade to a plan outside the filtered segment.
- Net MRR Retention – The percentage value of net MRR retained in the period.
Next Steps
- View the cumulative (net) effect of all changes a customer makes to their subscriptions with Net MRR Movements.
- View net MRR retention by customer cohort with Cohort: MRR Retention Rate.