Retention & Churn
Sa

Gross Revenue Retention (GRR)

Gross Revenue Retention, or GRR, measures the percentage of recurring revenue retained from existing customers, excluding expansion. Enterprise SaaS should target GRR above 95%. GRR below 80% is a red flag — it means you lose more than 20% of revenue from existing customers annually.

Why GRR Matters

GRR reveals the raw health of your customer base without the masking effect of expansion revenue. A company with 85% GRR and 115% NRR looks healthy on NRR, but is actually losing 15% of revenue from existing customers every period — expansion is just compensating. GRR is the metric that tells you if you have a leaky bucket, while NRR tells you if you're filling it fast enough. Investors increasingly look at GRR alongside NRR because it's harder to game.

How to Calculate GRR

Take the MRR at the start of a period from a customer cohort. Subtract contraction and churned MRR (but do not add expansion). Divide by starting MRR. GRR is always ≤100%.

GRR Formula
GRR = (Starting MRR − Contraction − Churn) ÷ Starting MRR × 100%

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Gross Revenue Retention
92%

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Industry Benchmarks

SegmentGoodAveragePoor
Enterprise SaaS>95%90–95%<90%
Mid-market SaaS>90%85–90%<85%
SMB SaaS>85%75–85%<75%
Consumer Subscription>80%65–80%<65%

Expert Tips

GRR below 80% is a red flag for most SaaS investors. It means you lose more than 20% of existing revenue annually — expansion can't sustainably compensate for that.

The gap between GRR and NRR tells you how dependent you are on expansion. If the gap is large, losing your expansion engine would reveal a serious retention problem.

GRR benchmarks differ by segment: enterprise SaaS should target 95%+, mid-market 90%+, SMB 85%+. These reflect the stickiness difference between contract sizes.

If GRR is declining quarter-over-quarter, investigate by cohort. Newer cohorts with lower GRR suggest product or market fit is deteriorating.

Frequently Asked Questions

What is GRR?
GRR (Gross Revenue Retention) measures the percentage of recurring revenue retained from existing customers, accounting for churn and contraction but excluding expansion. GRR is always 100% or less and shows your retention floor.
What is a good GRR for SaaS?
Enterprise SaaS should target GRR above 95%. Mid-market above 90%. SMB above 85%. GRR below 80% is a red flag indicating serious retention issues that expansion revenue is masking.
How is GRR different from NRR?
GRR excludes expansion revenue; NRR includes it. GRR shows pure retention — how much revenue you keep without upsells. NRR shows the net effect including expansion. GRR ≤ 100% always; NRR can exceed 100%.
Can GRR be above 100%?
No. GRR is capped at 100% because it only accounts for losses (churn and contraction), not gains (expansion). If you retained all revenue with zero churn and zero downgrades, GRR would be exactly 100%.

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Business Models Using GRR

GRR is a key metric for these business types. Click any model to see how Revenue Map calculates it automatically.

SaaS B2B

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