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FinToolSuite
Updated April 20, 2026 · SaaS & Subscription · Educational use only ·

Gross Revenue Retention Calculator

Retained revenue from starting base.

Calculate gross revenue retention from starting MRR, churned MRR, and contraction MRR — the SaaS health number that excludes upsells.

What this tool does

Gross revenue retention (GRR) shows what percentage of your starting monthly recurring revenue survives churn and contraction, excluding expansion or upsell. You input your starting MRR, the revenue lost to customer churn, and the revenue lost to downgrades or reduced spend (contraction). The calculator returns GRR as a percentage—a metric commonly tracked in subscription businesses to assess the health of the existing customer base. The result reflects only the revenue retained from your original base; it does not account for new customer acquisition or upsell gains. GRR is used for illustration and comparison purposes and assumes your inputs represent complete and accurate figures for the measurement period. A higher GRR indicates stronger retention; below 100% signals net revenue decline from the starting cohort.


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Formula Used
Starting MRR
Churned MRR
Contraction MRR

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Gross Revenue Retention (GRR) is the percentage of starting-period MRR still active at period end, excluding any expansion from existing customers. GRR caps at 100% - it measures only churn and contraction, never upside. top-tier SaaS delivers 90-95% GRR; below 85% signals retention problems that compound quickly.

100k starting MRR, 3k churned (cancellations), 2k contraction (downgrades) = 95k remaining. GRR = 95%. Healthy. Over 12 months at that rate, 46% of starting MRR would churn away without any replacement - which is why new sales matter so much. At 85% GRR, 68% would be lost annually - unsustainable territory.

GRR differs from NRR critically. GRR measures how well you keep what you have; NRR measures the same plus upside from expansion. Together they reveal what's working: low GRR + high NRR means you're churning small customers while expanding within survivors; high GRR + low NRR means retention is fine but upsell is weak.

Quick example

With starting mrr of 100,000 and churned mrr of 3,000 (plus contraction mrr of 2,000), the result is 95.00%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Starting MRR, Churned MRR, and Contraction MRR. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

What's happening under the hood

GRR = (starting MRR - churn - contraction) ÷ starting MRR × 100. Capped at 100% - expansion excluded. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What the score tells you

Headline financial numbers — income, savings, debt — each tell part of the story. This calculation stitches several together into a single read you can track over time. The value is in the direction, not the absolute number.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.

Example Scenario

££100,000 MRR - ££3,000 churn - ££2,000 contraction = 95.00%.

Inputs

Starting MRR:£100,000
Churned MRR:£3,000
Contraction MRR:£2,000
Expected Result95.00%

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

The calculator computes gross revenue retention by taking your starting monthly recurring revenue and subtracting both churned revenue (customers lost entirely) and contraction revenue (revenue lost from existing customers who reduced spend). This net retained figure is then divided by the starting revenue and expressed as a percentage. The model assumes all revenue changes occur uniformly within the period and treats churn and contraction as permanent reductions. The result is capped at 100 percent, meaning expansion revenue from existing customers is excluded from the calculation. The calculator does not account for customer acquisition costs, operational expenses, payment processing fees, or the timing of when revenue movements occur within the period.

Frequently Asked Questions

What's a good GRR?
SMB SaaS: 85-90%. Mid-market: 90-93%. Enterprise: 93-97%. Above 95% signals top-tier retention. Below 85% signals meaningful churn that will hurt valuation. GRR degrades materially in down markets as customers cut spending.
Why is GRR capped at 100%?
By definition, you can't retain more than 100% of starting MRR - expansion creates NRR above 100, not GRR. GRR purely measures the defensive side (keeping what you have). NRR adds the offensive side (expansion).
Monthly vs annual GRR?
Annual GRR is industry-standard for reporting. Monthly GRR smooths short-term noise. If quarterly 'GRR' is quoted, check annualized equivalent - 97% monthly churn is 69% annual GRR, much worse than it sounds.
How does GRR drive valuation?
Higher GRR = more predictable revenue = higher multiples. Public SaaS companies typically trade 8-12x ARR at 90%+ GRR; 4-6x at 80% GRR; below 70% often trade at <3x. A 5 percentage point GRR lift can lift valuation 30-50%.

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