North Metric

    What is Gross MRR Retention (GRR)?

    Your retention floor — the revenue you'd keep if every upsell and expansion stopped tomorrow.

    SAAS METRIC · RETENTIONBy Riyad Yahya
    IN SHORT

    In North Metric's 2026 benchmarks, the median Gross MRR Retention is 98.2% for SaaS companies under $10K MRR and 99.5% at $500K+ MRR. The top quartile reaches 98.9% and 99.8% at those stages, so compare your own figure with your MRR band, not one SaaS-wide average.

    BY RIYAD YAHYA, CO-FOUNDER & CTO · UPDATED NOV 14, 2026

    What is GRR?

    Gross MRR Retention (GRR) is the percentage of recurring revenue retained from existing customers over a period, counting only losses — churn and contraction — and ignoring expansion. GRR is always capped at 100%. It shows your retention floor: how much revenue you’d keep if no customer ever upgraded.

    GRR answers a different question than NRR. NRR asks “did expansion outpace losses?” GRR asks “how much of the base did we hold?” A company with 115% NRR and 85% GRR has strong expansion masking significant base erosion. If expansion slowed, revenue would fall to the 85% floor.

    Investors care about both metrics, but GRR tells them how durable the business is without relying on upsell.

    The GRR formula

    Gross MRR RetentionGRR = (Starting MRR − Contraction MRR − Net Churn MRR) ÷ Starting MRR × 100
    VARIABLEWHAT IT IS
    Starting MRRTotal MRR from existing customers at the beginning of the period
    Contraction MRRRevenue decrease from downgrades, reduced usage, or loss of one subscription when the customer has others
    Net Churn MRRRevenue lost from customers who canceled entirely — excluding same-period signups who left, since they were never in the starting base

    Worked example

    July 2026: Your existing customers started the month at $50,000 MRR.

    MovementAmount
    2 customers downgraded plans−$600
    4 customers canceled fully−$3,200
    1 same-period signup canceled (joined-and-churned)−$200 (excluded)
    The $200 joined-and-churned MRR is subtracted from churn because it was never in the starting base.
    ExampleGRR = (50,000 − 600 − (3,200 − 200)) ÷ 50,000 × 100 = 92.8%

    At 92.8%, you retained 92.8% of base revenue before any expansion. The $600 contraction and $3,000 effective churn (after netting out the joined-and-churned MRR) reduced the base by 7.2%. Expansion MRR and reactivation MRR from the same period are not included — those appear in NRR only.

    How it’s computed

    GRR uses the same state-comparison engine as NRR but strips out anything positive. It compares your subscription base at the start and end of each period:

    VARIABLEWHAT IT IS
    Step 1Reconstruct active subscriptions at period start and period end
    Step 2For subscriptions that exist at both timestamps with lower MRR: classify as contraction
    Step 3For subscriptions that disappeared and the customer has no other active subs: classify as churn
    Step 4For subscriptions that disappeared but the customer has other active subs: classify as contraction (not churn)
    Step 5Scan for subscriptions created and canceled within the period — subtract their MRR from churn

    Why contraction is included

    GRR counts both churn (full cancellations) and contraction (downgrades). A customer going from $500/mo to $100/mo is an 80% revenue loss even though they didn’t cancel. Both North Metric and ChartMogul include contraction in GRR — some older tools excluded it, but the industry standard is clear: GRR measures all base-revenue losses, not just cancellations.

    The joined-and-churned adjustment

    Subscriptions created and canceled within the same period are excluded from GRR’s churn component. GRR is a cohort metric — it measures retention of the starting cohort. A subscription that was never in the starting MRR base can’t churn from it.

    Cross-validation

    GRR has been cross-validated against ChartMogul across multiple months. Results: exact match or rounding-level agreement (within 0.04 percentage points) on all comparable periods. Both tools use the same formula and the same contraction-inclusion convention.

    Which customers move GRR

    GRR shows how much base revenue you held, not which customers are about to cancel or downgrade. North Metric works at the customer level: every paying customer gets a 0–100 churn risk score and is ranked by money at risk, so the accounts most likely to lower GRR show up while there’s still time to act.

    GRR vs NRR — when to use which

    GRR and NRR are complementary, not competing. GRR shows how well you hold revenue; NRR shows whether expansion outpaces losses. Use both to separate retention quality from expansion dependency.

    GRRNRR
    Includes expansionNoYes
    Includes reactivationNoYes
    Can exceed 100%No (capped at 100%)Yes
    Best forMeasuring stickiness without upsell masking lossesOverall business health, investor readiness

    Common GRR mistakes

    1. Excluding contraction. GRR must include downgrades, not just cancellations. A customer going from $500/mo to $100/mo is an 80% revenue loss — ignoring it paints a false picture of retention.
    2. Confusing GRR with NRR. NRR includes expansion; GRR does not. If your “GRR” is above 100%, you’re accidentally including expansion revenue and actually calculating NRR.
    3. Including same-period signups in churn. A subscription that started and ended within the same month was never in the starting base. Including it as churn deflates your GRR unfairly.
    4. Using end-of-period MRR as the denominator. The denominator is MRR at the start of the period. Using end-of-period MRR contaminates the denominator with the very changes you’re trying to measure.
    5. Comparing monthly GRR to annual GRR directly. Monthly GRR of 95% does not mean annual GRR of 95%. Over 12 months, 95% monthly GRR compounds to roughly 54% annual retention. Be explicit about which timeframe you’re reporting.

    SaaS GRR benchmarks

    GRR benchmarks are segmented by MRR tier. Your GRR is scored against peers at your revenue level — top 25% (75th percentile or above) and bottom 25% (25th percentile or below).

    Stage · MRRBottom 25%MedianTop 25%
    Seed · < $10K97.1%98.2%98.9%
    Early · $10K – $50K98.2%98.9%99.4%
    Growth · $50K – $100K98.7%99.3%99.7%
    Scale · $100K – $500K98.9%99.4%99.8%
    Enterprise · $500K+99.1%99.5%99.8%
    Higher is better. Benchmarks by revenue stage, compiled from published SaaS studies and North Metric’s own analysis.
    What’s a good SaaS churn rate?See how your churn rate compares to SaaS companies at your stage.See churn benchmarks →
    See who’s about to churnEvery customer ranked by money at risk.Churn prediction →

    Is my GRR good?

    Is 80% GRR good?

    At or better than the median at Seed stage; worse than the median at Early stage; in the bottom 25% at Growth, Scale and Enterprise stages.

    Is 85% GRR good?

    At or better than the median at Seed stage; worse than the median at Early and Growth stages; in the bottom 25% at Scale and Enterprise stages.

    Is 90% GRR good?

    In the top 25% at Seed stage; at or better than the median at Early stage; worse than the median at Growth, Scale and Enterprise stages.

    Is 95% GRR good?

    In the top 25% at Seed and Early stages; at or better than the median at Growth, Scale and Enterprise stages.

    Annual valueSeed
    < $10K MRR
    Early
    $10K – $50K MRR
    Growth
    $50K – $100K MRR
    Scale
    $100K – $500K MRR
    Enterprise
    $500K+ MRR
    80%Median or betterBelow medianBottom 25%Bottom 25%Bottom 25%
    85%Median or betterBelow medianBelow medianBottom 25%Bottom 25%
    90%Top 25%Median or betterBelow medianBelow medianBelow median
    95%Top 25%Top 25%Median or betterMedian or betterMedian or better
    Compared with the annual figures each stage’s monthly benchmark was converted from. Benchmarks by revenue stage, compiled from published SaaS studies and North Metric’s own analysis. Confidence 0.50–0.78 on a 0–1 scale, and no sample sizes are published, so treat these as a guide, not a verdict.
    Work out your GRRGross and net revenue retention from your own MRR movements.GRR calculator →

    Frequently asked questions

    What is a good GRR for SaaS?

    Above 95% monthly is healthy for most SaaS companies. The median GRR across all stages is roughly 98-99% monthly, meaning even well-run businesses lose 1-2% of base revenue each month to churn and downgrades. Below 90% monthly signals a significant retention problem that expansion alone cannot sustainably cover.

    What’s the difference between GRR and NRR?

    GRR measures only losses — churn and contraction — and is capped at 100%. NRR includes expansion and reactivation, so it can exceed 100%. GRR shows your retention floor; NRR shows whether expansion outpaces losses. A company with high NRR but low GRR is depending on upsell to mask a churn problem.

    Can GRR ever be above 100%?

    No. GRR is clamped between 0% and 100% by design. Since it only measures losses (churn and contraction) without counting expansion, the best possible result is 100% — meaning you lost zero revenue from your existing base. If your retention metric exceeds 100%, you’re looking at NRR, not GRR.

    Does GRR include downgrades or just cancellations?

    Both. GRR includes contraction (downgrades, reduced seats, plan decreases) and churn (full cancellations). This is the industry standard followed by both North Metric and ChartMogul. A customer churn rate that only counts cancellations misses the revenue impact of downgrades — GRR captures both.

    How does monthly GRR compound to annual GRR?

    Annual GRR = monthly GRR raised to the 12th power. A 95% monthly GRR compounds to roughly 54% annual retention — you’d retain just over half your starting revenue after a year without any expansion. A 98% monthly GRR compounds to about 78% annually. Small monthly improvements have outsized annual impact.

    From metric to action

    North Metric ranks your paying Stripe customers by money at risk, so you see who is likely to leave before this number moves. See how churn prediction works.

    Further reading

    Related metrics

    All metrics →
    SAAS METRIC

    Net MRR retention (NRR)

    NRR = (Starting MRR + Expansion + Reactivation − Contraction − Net Churn) ÷ Starting MRR × 100What percentage of last period's MRR you kept, including expansion.Open metric →
    SAAS METRIC

    Gross MRR churn rate

    Gross MRR Churn Rate = (Churn MRR + Contraction MRR) ÷ Starting MRR × 100The inverse view — what percentage of MRR you lost to churn and contraction.Open metric →
    SAAS METRIC

    Customer churn rate

    Customer Churn Rate = ((Churned − Joined & Churned − Reactivated) ÷ Customers at Start) × 100Percentage of paying customers lost in a period.Open metric →
    See the customers behind your GRR.Actions off until you turn them onGet your free churn report →