Revenue Metrics

Gross Revenue Retention (GRR)

The percentage of recurring revenue retained from existing customers, excluding any expansion revenue.

GRR measures the floor of retention — what percentage of revenue would you keep if no customer ever upgraded? Unlike NRR, GRR cannot exceed 100% because expansion is excluded. It captures only the negative forces: downgrades and full cancellations. GRR is the purest signal of how well a product retains its core value for existing customers. Enterprise SaaS businesses typically achieve GRR above 90%, while SMB-focused products often see 80–85% due to higher churn rates in that segment. GRR below 80% is a warning sign that the product is struggling to deliver ongoing value or is selling to customers who don't have a persistent need. Pairing GRR with NRR reveals whether expansion is masking underlying retention problems.