Gross Revenue Retention (GRR): Formula & Benchmarks (2026)
Gross Revenue Retention (GRR) measures the percentage of recurring revenue you keep from existing customers, excluding expansion. It is bounded between 0% and 100% — and it's the cleanest measure of pure retention, unaffected by upsells or cross-sells.
The formula
GRR = (Starting MRR − Churned MRR − Downgrade MRR) ÷ Starting MRR × 100
Two things to note:
- No expansion in the numerator. Upgrades and cross-sells are not added back. That's what makes GRR different from NRR.
- Cohort or book-level? Either works, as long as you're consistent. Cohort GRR (a single signup cohort over time) is more diagnostic; book GRR (the whole customer base over a window) is more reportable.
Worked example
Acme SaaS starts the year with €1,200,000 in ARR from existing customers. Over 12 months: €120,000 churns out, another €40,000 downgrades, and €180,000 of expansion lands. What's GRR?
GRR = (1,200,000 − 120,000 − 40,000) ÷ 1,200,000 × 100
GRR = 1,040,000 ÷ 1,200,000 × 100
GRR = 86.7%
That 86.7% sits below the 2026 B2B SaaS median (~90%) and well below the top quartile (95%+). The €180k of expansion would lift NRR above 100% — but GRR exposes the underlying retention weakness that NRR hides.
2026 GRR benchmarks by ARR stage
| ARR stage | Median GRR | Top quartile |
|---|---|---|
| <$1M ARR | ~80% | ~88% |
| $1M–$5M ARR | ~85% | ~92% |
| $5M–$20M ARR | ~90% | ~95% |
| $20M+ ARR | ~92% | 97%+ |
Directional ranges from public SaaS benchmark sources (KeyBanc SaaS Survey, ChartMogul, SaaS Capital). GRR typically improves with ARR scale because larger customers stick longer and ICP discipline tends to sharpen with maturity.
GRR vs. NRR — when to use each
- Use GRR to measure pure retention. Best for diagnosing whether your CS motions and product stickiness are actually working.
- Use NRR to measure financial impact. Best as the headline number for investors and the board.
- Always report both. A company with NRR ≥ 110% but GRR < 85% is masking a churn problem with expansion. Investors increasingly ask for both.
Deeper context: Net Revenue Retention (NRR) · Churn vs. Retention
Frequently asked questions
What is Gross Revenue Retention (GRR)?
Gross Revenue Retention (GRR) is the percentage of recurring revenue retained from existing customers over a given period, excluding any expansion. It is bounded between 0% and 100% — you can never have more than you started with under GRR. It is the cleanest measure of pure retention, unaffected by upsell or cross-sell.
What is the GRR formula?
GRR = (Starting MRR − Churned MRR − Downgrade MRR) ÷ Starting MRR × 100. Expansion MRR is deliberately excluded — that is the line that separates GRR from NRR.
What is a healthy GRR for B2B SaaS in 2026?
Median GRR for B2B SaaS in 2026 sits around 90%, with the top quartile at 95% or higher. Below 85% usually signals a meaningful retention problem; below 80% often indicates an ICP-fit or product-fit problem rather than a CS execution problem.
How does GRR differ from NRR?
NRR adds expansion MRR (upsells, cross-sells) back to the retained revenue. GRR does not. Both should be reported together — NRR shows the financial impact of CS plus expansion motions; GRR isolates retention from expansion. A healthy business sees both move in the right direction.