KKPI Formulas
SaaS KPI Formula

Net Revenue Retention Formula

Net revenue retention measures recurring revenue retained from existing customers after expansion, contraction, and churn.

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Simple formula

(Starting MRR + Expansion MRR - Contraction MRR - Churned MRR) / Starting MRR

The formula uses these inputs:

  • Starting MRR: enter your value in the calculator or spreadsheet.
  • Expansion MRR: enter your value in the calculator or spreadsheet.
  • Contraction MRR: enter your value in the calculator or spreadsheet.
  • Churned MRR: enter your value in the calculator or spreadsheet.

Excel formula

Use this Excel formula as a starting point. Replace the sample cell references with the cells in your worksheet.

=IFERROR((B2+C2-D2-E2)/B2,0)

Google Sheets formula

In most cases, the Google Sheets version uses the same structure as Excel.

=IFERROR((B2+C2-D2-E2)/B2,0)

Power BI DAX measure

Use this DAX pattern as a starting point and rename measures or columns to match your Power BI model.

NRR =
DIVIDE(
    [Starting MRR] + [Expansion MRR] - [Contraction MRR] - [Churned MRR],
    [Starting MRR]
)

SQL example

This generic SQL pattern can be adapted to your warehouse table names and column names.

SELECT
    /* replace with your formula */ AS net_revenue_retention
FROM kpi_data;

Net Revenue Retention calculator

Result—

How to interpret Net Revenue Retention

Use this KPI with trend data, targets, and related metrics. A single value is less useful than a consistent definition tracked over time.

Important: KPI definitions can vary by company, accounting policy, analytics platform, or reporting standard. Keep the definition consistent when comparing periods.

Common mistakes

  • Mixing different time periods in the numerator and denominator.
  • Using totals that do not match the KPI definition used by your company.
  • Comparing results across teams or industries without context.

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Frequently asked questions

What is the Net Revenue Retention formula?

The common Net Revenue Retention formula is: (Starting MRR + Expansion MRR - Contraction MRR - Churned MRR) / Starting MRR.

How do you calculate Net Revenue Retention in Excel?

Use this Excel formula pattern: =IFERROR((B2+C2-D2-E2)/B2,0). Replace the cell references with your own data.

Can this KPI be calculated in Power BI?

Yes. Use the DAX measure on this page as a starting point and adjust table and column names to match your model.