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.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
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