Gross Revenue Retention (GRR)
GRR measures how much recurring revenue a group of customers keeps after cancellations and downgrades. It ignores upgrades, so it can't exceed 100%.
Updated October 1, 2026
Gross revenue retention (GRR) is the share of recurring revenue you keep from existing customers after cancellations and downgrades. It gives no credit for upgrades, so it can't go above 100%. It shows how much revenue you lose, with nothing offsetting it.
How to calculate GRR
GRR = (starting MRR − contraction − churn) ÷ starting MRR
A cohort starts at $100,000 in MRR. It loses $8,000 to contraction and $5,000 to churn. GRR is ($100,000 − $8,000 − $5,000) ÷ $100,000 = 87%.
Expansion isn't part of the formula. That's why the same cohort's net revenue retention is higher.
Why GRR matters
- A few large upgrades can't hide churn in GRR, as they can in NRR.
- GRR is the lowest your retention can look for a cohort. A high GRR means customers stay and keep paying.
- Strong B2B SaaS companies often report GRR around 85% to 95%. Consumer and small-business products usually run lower because more customers cancel.
GRR vs NRR
NRR lets expansion offset losses and can go above 100%. GRR leaves expansion out. If NRR is strong but GRR is weak, upgrades are covering for customers you're losing. Work on churn, including failed payments, instead of counting on upgrades to fill the gap.