Gross revenue retention (GRR) calculator
GRR stands for gross revenue retention.
GRR is like NRR (net revenue retention) but without upgrades: the share of starting recurring revenue left after downgrades and customers leaving. It can never be above 100%.
The formula
GRR = (Start MRR − downgrades − lost MRR) ÷ start MRR
Worked example: 95.7% a month
The example is a UK software company in one month: £50,000 of revenue excluding VAT, 400 customers and £180,000 in the bank.
- £38,000 − £500 − £1,140 = £36,360
- £36,360 ÷ £38,000 = 95.7%
Work out your GRR
Until you type a figure, the results show an example business. Fill in only what you know: from then on every result uses your figures alone, and nothing you type leaves your browser.
GRR for the example
Example95.7%
a month
- £38,000 − £500 − £1,140 = £36,360
- £36,360 ÷ £38,000 = 95.7%
Formula: (Start MRR − downgrades − lost MRR) ÷ start MRR.
- Over 12 months at this rate
- 59%
Everything your numbers show
For the example business: 29 of 29. Type your own figures to replace them. Select one for its page.
- Revenue£50,000a month
- VATValue added tax£6,000a month
- MRRMonthly recurring revenue£40,000a month
- ARRAnnual recurring revenue£480,000a year
- GMVGross merchandise value£250,000a month
- ARPUAverage revenue per user£119.62a month
- CACCustomer acquisition cost£300a customer
- LTVLifetime value£2,233a customer
- LTV:CACLifetime value to acquisition cost7.4:1
- Churn3.0%a month
- NRRNet revenue retention99.6%a month
- GRRGross revenue retention95.7%a month
- AOVAverage order value£111.11an order
- Gross margin70.0%
- EBITDAEarnings before interest, taxes, depreciation and amortisation−£4,000a month
- ROIReturn on investment30.0%
- YoYYear-on-year growth66.7%year on year
- MoMMonth-on-month growth6.4%month on month
- QoQQuarter-on-quarter growthNeeds quarterly figures
- Burn rate£9,000a month
- Runway20 months
- Operating cash flow−£7,000a month
- Profit and loss−£5,000a month
- Balance sheet£160,000Net assets
- Cash flow−£9,000a month
- COGSCost of goods sold£15,000a month
- OPEXOperating expenditure£39,000a month
- CAPEXCapital expenditure£2,000a month
- FTEFull-time equivalent8.0
How to read your result
GRR shows how sticky the product is on its own. A big gap between NRR and GRR means upgrades are hiding churn.
Watch out for
Do not add upgrades back in. That turns it into NRR.
Last checked . Estimates only, not financial, tax or legal advice: check your accounts and documents, and take advice before you act. More terms in the startup glossary.