Comparison

NRR vs GRR: SaaS Retention Metrics Explained

GRR measures retained revenue before expansion. NRR includes expansion, contraction, and churn.

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Quick Answer

Use GRR to evaluate defensive retention. Use NRR to evaluate whether expansion offsets losses.

Best for

GRR is best for product stickiness and churn quality.

Also compare

NRR is best for growth within existing accounts.

Watch out

Strong NRR can hide weak GRR if expansion from a subset offsets churn elsewhere.

Expansion masks churn

A company can report 115% NRR while GRR is 82%, meaning expansion is strong but base churn still requires attention.

Key Metrics

Starting ARR
Churn
Contraction
Expansion

Common Mistakes

Looking only at NRR
Mixing logo and revenue retention
Ignoring cohort definitions

Frequently Asked Questions

When should I use NRR vs GRR?

Use GRR to evaluate defensive retention. Use NRR to evaluate whether expansion offsets losses.

Which calculator should I open next?

Start with NRR Calculator, then use the related calculator workflow to validate the result from another angle.

Continue the workflow

Use this guide with the full SaaS Retention Calculators

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