Revenue & Sales
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Net Revenue Retention

Net revenue retention measures recurring revenue kept from existing customers, including expansion, contraction and churn.

Formula

NRR=M0+E−C−DM0×100%NRR = \dfrac{M_0 + E - C - D}{M_0} \times 100\%

Variables

NRRNet revenue retention
M_0Starting MRR
EExpansion revenue
CContraction (downgrades)
DChurned revenue

Example

Start $100k, +$20k expansion, −$5k downgrade, −$8k churn: NRR = 107%

Did You Know?

An NRR above 100% means a company grows from its existing base alone — the gold standard for SaaS.

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Total Revenue

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Total revenue is the selling price multiplied by the number of units sold.

Net Revenue

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Net revenue is gross revenue less returns, refunds and discounts — the amount actually recognised.

Average Revenue

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Average revenue is total revenue divided by units sold — equal to price per unit in a single-price market.

Marginal Revenue

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Marginal revenue is the extra revenue earned from selling one additional unit.

Revenue Growth Rate

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The percentage change in revenue from one period to the next.

Monthly Recurring Revenue

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Monthly recurring revenue is the number of active subscribers times average revenue per user per month.