Chart: Gross MRR Retention

If you’re new to ChartMogul, get to know how charts work.

Gross MRR Retention (GRR) charts the change in monthly recurring revenue (MRR) retained from subscribers, offset by losses due to contraction and churn.

Gross MRR Retention

TL;DR

Gross MRR Retention (GRR) charts the percentage of MRR retained in a given report interval considering losses due to contraction and churn within the interval. It gives you insight into how well you retain revenue (without expansion) from existing subscribers. For SaaS businesses, GRR ideally exceeds 90%.

What insights can I gain from GRR?

Gross MRR Retention, also known as Gross Renewal Rate (GRR), is an indicator of how well you retain subscribers at their current price point or contract value. The lower your GRR, the more your business growth is negatively impacted by contraction and churn

GRR can be an indicator that your business is satisfying market demand, also known as product-market fit. If you’re just starting your business, and have high GRR, it could indicate that your product has key features or meets requirements that customers need (and are willing to pay for). As your business grows and your product is more established, high GRR could indicate that customers see your product as a leader in the market. Use Benchmarks to compare your GRR to industry peers.

Chart Notes

  • Excludes New Business, Reactivation, and Expansion.
  • The value of Starting MRR is from subscribers with an Active or Past due subscription at the start of the report interval.
  • 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.

Calculation

ChartMogul calculates GRR as total MRR from existing subscribers at the start of the report interval and subtracts contraction and churn during the interval divided by total MRR from subscribers at the start of the interval:

(Starting MRR − Contraction MRR − Churn MRR) ÷ Starting MRR

Example

At the start of the month, you have $100 in MRR. During the month, you lose $10 to churn and $10 to contraction. Your net GRR retention rate is 80%: ($100 − $10 − $10) ÷ $100.

Chart Data

The Chart Data table for Gross MRR Retention works differently than other charts. It provides the following breakdown:

  • Starting MRR — The value of MRR at the beginning of the report interval.
  • Contraction MRR — The net loss in MRR from existing customers in the report interval.
  • Churn MRR — The net loss of MRR from existing customers who canceled their last (or only) subscription in the report interval.
  • Gross MRR Retention — The percentage value of gross MRR retained in the report interval.

Next Steps

  • To view revenue retained including expansion, use Net MRR Retention.
  • View the cumulative (net) effect of all changes a customer makes to their subscriptions with Net MRR Movements.
Was this article helpful?

We’re sorry to hear that. Would you like to share more feedback?


Thanks for your feedback!