Customer and Revenue Retention Calculator
Calculate simple period retention measures for the same opening customer cohort. Exclude new-customer revenue from gross and net revenue retention.
How the calculation works
Customer churn = lost opening customers ÷ opening customers. GRR = (opening recurring revenue − cancellations − contraction) ÷ opening revenue. NRR adds expansion from that opening cohort to the GRR numerator. Results are percentages.
Worked example
Losing 5 of 100 opening customers gives 5% churn. Opening recurring revenue of 10,000, cancellations of 1,000, contraction of 500 and expansion of 2,000 produce GRR of 85% and NRR of 105%.
Read the limits before using the result
Use mutually exclusive cancellation and contraction amounts. Reconcile the same recurring revenue basis and period. NRR can exceed 100%; it can hide the loss of individual customers. A zero denominator produces an unavailable result.
David Skok on recurring revenue and retention metrics. See our calculation and research methodology.