Gross Revenue Retention

Also called GRR

Gross revenue retention measures how much recurring revenue you keep from existing customers, counting only losses from churn and downgrades, never expansion. It cannot exceed 100 percent.

GRR = (starting revenue - contraction - churn) / starting revenue

Why it matters

GRR strips out the flattering effect of upsells to show how leaky the bucket really is. A high GRR means the core is sticky; a low one means you are refilling churn even before you try to grow.

For example

A company keeps 92 of every 100 rupees of recurring revenue from existing customers before counting any upsells, a 92 percent gross revenue retention.

Related terms

Net Revenue Retention Churn Retention

Go deeper

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

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