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DefinitionKimo BIFinance & SaaS

Gross Revenue Retention

GRR

Definition

Gross revenue retention (GRR) is the percentage of starting recurring revenue retained from existing customers after downgrades and churn, excluding any expansion. It cannot exceed 100%.

Updated 2 sources3 min read

Gross revenue retention (GRR) is the percentage of starting recurring revenue you keep from existing customers after downgrades and churn, with expansion deliberately excluded. Because upsells cannot offset losses, GRR can never exceed 100%, which makes it the cleanest measure of how sticky your product is.

01 —

What is gross revenue retention?

GRR uses the same cohort as net revenue retention but strips out upsells, cross-sells and price increases, so it cannot exceed 100%.1 It isolates the defensive side of the business: how much of what customers already pay survives a year of renewals, budget cuts and competitors. The two losses it counts are the same pair Stripe groups as “churned revenue”: churned MRR plus contraction MRR.2

02 —

Worked example

A cohort starts the year at $500,000 MRR. Over 12 months it loses $15,000 to downgrades and $35,000 to cancellations, and expands by $80,000. GRR = (500,000 − 15,000 − 35,000) ÷ 500,000 = 90%. NRR for the same cohort is 106%. The 16-point gap is expansion; if expansion stalls next year, growth from the base drops to whatever GRR allows.

03 —

What is a good gross revenue retention rate?

91%
Median GRR, private B2B SaaS, 2023
≥ 90%
SaaS Capital “table stakes” threshold
~93% vs 90%
Median GRR, ACV above vs below $25k

SaaS Capital’s 2023 survey of more than 1,500 private B2B SaaS companies found a median GRR of 91%, unchanged from the prior year, and described 90% as the bar you need to clear to have a shot at parity with peers.1 Higher-priced products retain better: companies with annual contract values above $25,000 showed roughly 93% median GRR versus 90% below that.1

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Common mistakes

  • Netting expansion and contraction on the same account before calculating. If a customer drops one product and adds another, count the drop as contraction.
  • Reporting logo retention instead. Keeping 95% of customers can still mean losing 15% of revenue if the biggest accounts leave.
  • Excluding “involuntary” churn from failed payments. It is still revenue you no longer collect.
05 —

How to track GRR in Kimo

In Kimo, GRR and NRR share one customer-month model built from Stripe or your billing database, so the cohort and window always match. Chart them together in the revenue view, set an alert when trailing GRR drops below your floor, and use cohort analysis to see which signup quarters or plans are dragging it down. The SaaS metrics guide covers the SQL.

Frequently asked questions

Can gross revenue retention be above 100%?

No. GRR excludes expansion, so the most a cohort can retain is all of its starting revenue: 100%.

Is GRR the inverse of churn?

Roughly. GRR equals 100% minus gross revenue churn (churn plus contraction) for the same cohort and window. Logo churn, which counts customers rather than dollars, is a different metric.

Sources

2 references
  1. 2023 B2B SaaS Retention Benchmarks (Research Brief 28) (opens in a new tab)
    SaaS Capital2023saas-capital.com

    Median GRR 91%; GRR ≥ 90% as “table stakes”; GRR by ACV band; definitions.

  2. Billing analytics: metric definitions (churned revenue) (opens in a new tab)
    Stripe Docsdocs.stripe.com

    Churned revenue as the sum of churn and contraction MRR.

External sources were accessed at the time of writing. Kimo product details, customers and figures in examples are illustrative unless a source is cited.

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