Gross revenue retention (GRR) measures the share of recurring revenue you keep from existing customers, excluding any expansion, so it can never exceed 100%. Net revenue retention (NRR) is the same but includes expansion (upgrades, seats, usage), so it can exceed 100%. GRR is the floor: how leaky your bucket is. NRR tells you whether expansion more than refills the leak. Median GRR is around 88% and median NRR around 101% (Benchmarkit 2025), and healthy SaaS businesses watch both.
The two are often confused because they share most of their formula. The difference, expansion, is the whole point. This is the comparison; for each metric on its own see GRR and NRR, and the full picture in churn & retention.
NRR vs GRR at a glance
| GRR | NRR | |
|---|---|---|
| Includes expansion? | No | Yes |
| Can exceed 100%? | Never | Yes |
| What it answers | How much do I keep? | Does my base grow on its own? |
| 2024 median | ~88% | ~101% |
| Best for | Measuring leakage | Measuring durable growth |
The formulas
GRR = (Starting MRR − Churn − Contraction) ÷ Starting MRRExpansion excluded, caps at 100%
NRR = (Starting MRR − Churn − Contraction + Expansion) ÷ Starting MRRExpansion included, can exceed 100%
Both start from the same base of existing customers (no new logos). The only difference is the + Expansion term in NRR. That's why NRR ≥ GRR always, and why the gap between them is exactly your expansion rate.
Why the gap matters
Read them as a pair. GRR is the floor, even with zero expansion, this is what you'd retain. NRR shows whether expansion refills the leak: above 100%, your existing base grows on its own before a single new sale. A company with 88% GRR and 118% NRR is leaking 12% but expanding 30% on top, a strong, durable base. One with 88% GRR and 99% NRR keeps the same customers but barely expands, so growth has to come entirely from new acquisition.
2026 benchmarks
- GRR median ~88% (Benchmarkit 2025). Above ~90% is strong; below ~80% signals a leaky bucket that acquisition alone won't fix.
- NRR blended median ~101%, but the segment split is large: enterprise (>$100K ACV) runs ~118%, SMB (<$25K) ~97% (Benchmarkit 2025). Judge yourself against your segment, not the blended number.
NRR above 100% means negative net revenue churn, the strongest growth signal in SaaS, and why investors read NRR as a leading indicator of durable growth.
How to improve each
- Lift GRR by cutting churn and contraction: better onboarding, stickier product usage, catching at-risk accounts early.
- Lift NRR by adding expansion on top: upsells, seat growth, usage-based pricing that grows with the customer.
GRR has a hard ceiling (100%), so once it's healthy the leverage moves to expansion, which is why mature SaaS companies obsess over NRR.
Frequently asked questions
What is the difference between NRR and GRR?
GRR excludes expansion and caps at 100%, it measures how much revenue you keep. NRR includes expansion and can exceed 100%, it measures whether expansion refills what churn and contraction take. The gap between them is your expansion rate.
What are good NRR and GRR benchmarks?
Median GRR is ~88% and median NRR ~101% (Benchmarkit 2025). For NRR, enterprise runs ~118% and SMB ~97%, so compare within your segment. GRR above ~90% and NRR above 100% are strong.
Can GRR be over 100%?
No. GRR excludes expansion, so the most you can retain is everything you started with, 100%. Only NRR, which adds expansion, can exceed 100%.
Which matters more, NRR or GRR?
Both. GRR shows how leaky the product is (a retention problem you must fix first); NRR shows whether expansion turns the base into a growth engine. A high NRR built on a weak GRR is fragile, expansion masking heavy churn.
Model retention in Adlega
Adlega builds the retention bridge, churn, contraction and expansion, directly into your financial model, so a change to a churn or expansion assumption flows straight through to GRR, NRR, ARR and valuation. The AI CFO explains each number. Try Adlega free while it is in beta.
Related: GRR, NRR, churn & retention, and expansion revenue.