NRR in plain terms
Take every customer you had twelve months ago. Look at what they pay you today. Divide today's figure by the old one. That's net revenue retention.
Above 100 percent, your existing customers pay you more than they did, even after the ones who left. Below 100, the bucket leaks faster than upgrades fill it. New sales have to cover the gap before real growth starts.
NRR and GRR together
Gross revenue retention strips out expansion. It only counts contraction and churn, so it can never go above 100 percent. It shows pure leakage.
Read the two as a pair. A company with 115 percent NRR and 78 percent GRR is losing a lot of customers and papering over it with big upsells from a few. That's fragile. A company at 105 and 95 is steadier, even though the headline looks smaller.
What goes in
Enter starting MRR, then expansion, contraction and churned MRR over the period. Only count the starting cohort. Revenue from customers who joined during the year doesn't belong here, and including it is the most common way people inflate NRR.
The waterfall chart shows each step from starting MRR to ending MRR. The lever table shows how much NRR moves if you improve each piece by a point.
The 12-month projection
The cohort projection compounds your monthly rate over twelve months. Compounding is the honest method, since each month's change applies to a base that already changed. Multiplying one month by twelve gives a wrong answer.
Use it to see what a few points of better retention are worth by next year.
Improving it
Fix churn first. It's usually cheaper than building expansion. Then look at pricing tiers and seat-based upgrades. NRR also ties to CAC payback: high retention lets you spend more to win a customer, since they'll keep paying.
Benchmarks vary by market and company size. Treat any target as a rough guide. Your inputs stay in your browser.