Report: Net MRR Retention
The Net MRR Retention (NRR) report shows the percentage of recurring revenue you keep from existing subscribers each period — counting gains from expansion (upgrades) and reactivation (returning customers), and losses from contraction (downgrades) and churn (cancellations).
For SaaS businesses, NRR is a clear signal of product value and pricing fit. An NRR above 100% means your existing customers generate more revenue over time — you’re growing without adding new customers. Investors use it to gauge the long-term health 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 reports work.
Why is NRR a vital metric for SaaS?
Net MRR Retention shows how well you keep revenue from existing subscribers. When customers see value in your product, they keep paying — and often pay more. 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.
What to Know About This Report
- 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 report.
- 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 period-over-period rates (WoW = week-over-week, MoM = month-over-month, QoQ = quarter-over-quarter) and year-over-year (YoY) rates. Learn how to set comparison periods.
- 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).
How ChartMogul Calculates Net MRR Retention
ChartMogul calculates NRR by starting with MRR from existing subscribers, adding expansion MRR and reactivation MRR, subtracting contraction MRR and churn MRR, then dividing by that starting MRR:
(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, adding $10 in expansion MRR.
- You lose $10 to churn and $10 to contraction.
Your NRR for the month is 90%: ($100 + $10 − $10 − $10) ÷ $100.
How ChartMogul Estimates Retention for an In-Progress Period
For an in-progress period, ChartMogul estimates the retention rate at period end using this formula:
(MRR at the start of the period + projected movement value) / MRR at the start of the period x 100
ChartMogul calculates projected movement value — an estimate of where MRR movements will land by period end — as:
(Expansion + Reactivation + Contraction + Churn) * total days in the period / days passed in the period
How to Read the Report Data Table
The Report Data table for the Net MRR Retention report — the breakdown grid below the main report — works differently from other reports. Here’s what each row means:
- 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
- See the cumulative effect of all subscription changes with the Net MRR Movements report.
- Break down net MRR retention by customer cohort with the Cohort: MRR Retention Rate report.