KPICustomer Success & Service

Gross Revenue Retention (GRR)

Recurring revenue retained from existing customers excluding any expansion revenue

What is Gross Revenue Retention (GRR)?

Gross revenue retention is the percentage of recurring revenue kept from existing customers over a period, ignoring any expansion. It shows how much of the revenue base survives losses and downgrades.

Because it cannot exceed 100%, it is a stricter view of retention than net revenue retention.

How this KPI is measured

Function
Customer Success & Service
Sub-function
Revenue Retention
Industry
All Industries
Type
Lagging
Impact
Revenue
Unit
%
Measurement frequency
Monthly / Quarterly
Formula
((Starting MRR − Churned MRR − Contraction MRR) / Starting MRR) × 100

How to calculate it

Subtract churned and contraction monthly recurring revenue (MRR) from starting MRR, divide by starting MRR, and multiply by 100.

For example, with starting MRR of 1,000,000, churned MRR of 60,000 and contraction MRR of 40,000, GRR is (1,000,000 - 60,000 - 40,000) / 1,000,000 x 100 = 90%.

Expansion is excluded, so the figure shows pure retention.

Where it is used

  • Measuring true retention

    See losses without expansion masking them.

  • Assessing product stickiness

    Judge the strength of the base.

  • Forecasting revenue

    Project the base.

How to improve it

Tips and common mistakes

  • GRR cannot go above 100%.
  • Use the same time window for every customer cohort.
  • Read with net revenue retention.

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