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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.
- 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.
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
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.
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.