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Unit economics & SaaS
Net revenue retention
Revenue from the customers you had a year ago, as a share of what they paid then — after churn, downgrades, and expansion. Above 100% means the existing base grows on its own.
Owned by: Senior analystTest band: Senior analyst
The formula
NRR = (Starting ARR + Expansion − Contraction − Churn) ÷ Starting ARR
In practice
The single number investors in subscription businesses ask for first. Above 110% is strong; below 90% means the bucket leaks faster than you can fill it.
The kind of thing the test asks
- Starting ARR $1M. Over the year: expansion $150k, contraction $50k, churn $120k, new logos $400k. NRR is…