Definition
Net revenue retention (NRR), also called net dollar retention (NDR), measures how much recurring revenue a group of existing customers generates now compared with a year (or month) ago, counting upgrades as well as downgrades and cancellations.
Formula
NRR = (starting recurring revenue + expansion − contraction − churn) ÷ starting recurring revenue × 100, for the same set of customers.
Example
Customers who paid $100,000 a year ago now pay $108,000, after $15,000 of upgrades and $7,000 of downgrades and cancellations: NRR = 108%.
Why it matters
Above 100%, revenue from existing customers grows on its own. It combines customer retention with expansion.