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Gross Revenue Retention (GRR) Formula
GRR = (Starting MRR - Churned MRR - Contracted MRR) / Starting MRR × 100
GRR is always ≤ 100%. It measures how much existing revenue you retain without counting expansion.
GRR vs NRR
| Metric | Includes Expansion | Can Exceed 100% |
|---|---|---|
| GRR | No | No |
| NRR | Yes | Yes |
GRR tells you about the health of your base retention. NRR tells you about total revenue momentum. A company with GRR of 85% but NRR of 110% is masking a significant churn problem with upsells.
GRR Benchmarks
| GRR | Assessment |
|---|---|
| 95%+ | Best-in-class (Salesforce, Veeva tier) |
| 90–95% | Strong |
| 85–90% | Acceptable |
| 80–85% | Below average — warrants investigation |
| < 80% | High churn — retention problem |
Why GRR Matters for Fundraising
Investors scrutinize GRR independently of NRR because it reveals whether growth is organic or driven by aggressive upselling to compensate for churn. A business with 80% GRR and 120% NRR is a different risk profile than one with 95% GRR and 105% NRR.