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NRR and GRR calculation (net and gross revenue retention)

Summary. GRR and NRR measure the share of recurring revenue from already-present customers that is retained (GRR), or retained and increased (NRR), from one period to the next. This article explains how Fincome calculates them.

What are GRR and NRR for?

GRR (Gross Revenue Retention) and NRR (Net Revenue Retention) answer the same question: among the customers present at the beginning of a period, what share of their recurring revenue is still there at the end?

GRR only accounts for losses: cancellations (churn) and amount decreases (contraction). It is capped at 100%.
NRR starts from the same calculation but adds back expansion (price increases, upgrades, additional volumes). It can therefore exceed 100% when expansion outweighs the losses.

The formulas

GRR = (MRR at the start of the period − contraction − churn) / MRR at the start of the period

NRR = (MRR at the start of the period − contraction − churn + expansion) / MRR at the start of the period

The only difference between the two is the expansion term: GRR excludes it, NRR adds it back.

The calculation is based on MRR, and not on recognized revenue (see Difference between MRR and revenue recognition).

The revenue of new customers does not enter either calculation: both the numerator and the denominator cover only the customers already present in the previous period.

The comparison periods

Fincome compares a period to the previous one of the same nature, over calendar periods:

Monthly: the month compared to the previous month.
Quarterly: calendar quarters (January to March, April to June, etc.).
Annual: calendar year (January to December) compared to the previous year.

To reason over a sliding window rather than calendar periods, you can use Fincome's Rolling Window; the calculation method is then different (see Analyze your metrics with the Rolling Window).

The case of a price increase

For a retained customer who renews at a higher price, the additional MRR is an expansion: it is added back into NRR (which pushes it above GRR) and excluded from GRR. A price increase therefore pulls NRR up without lowering GRR.

Where to find these movements in Fincome

These events are visible on the MRR movements page, which breaks down each variation into new, expansion, contraction, and churn. At the product × customer granularity, it is possible to distinguish expansion tied to price from that tied to volume or cross-sell, provided that quantities and products are filled in on your invoice lines.

Why do my rates differ depending on the period?

On the same base, a GRR can be high monthly and lower annually (for example 95% monthly, 88% quarterly, 63% annually). It is the same formula applied over windows of different lengths: the longer the window, the more it exposes a large share of the renewal cycle to churn and contraction. The annual view is therefore the most conservative.

FAQ and common mistakes

Does the churn rate include the new customers of the period?
No. Like GRR and NRR, it only covers the customers present at the beginning of the period.

Why does my NRR exceed 100%?
Because the expansion of your existing base (price increases, upsell, volumes) outweighs your losses (churn + contraction).

Can my GRR exceed 100%?
No. GRR excludes expansion: it is capped at 100%, reached only in the absence of churn and contraction over the period.

My figures don't match my recognized revenue.
This is expected: the calculation is based on MRR, and not on recognized revenue. See Difference between MRR and revenue recognition.

Updated on: 23/07/2026

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