Monthly Recurring Revenue (MRR) vs Net Revenue Retention (NRR)
MRR tells you how big your recurring revenue base is; NRR tells you how well you retain and grow it. A high MRR with a low NRR signals that you are running fast on a leaky bucket. Together they paint a complete picture of revenue health.
At a Glance
Monthly Recurring Revenue (MRR)
Predictable revenue normalized to a monthly amount
Net Revenue Retention (NRR)
Revenue retained plus expansion from existing customers
Key Differences
- MRR is an absolute dollar value; NRR is a percentage ratio.
- MRR includes new customer revenue; NRR measures only the existing customer base.
- NRR above 100% indicates net expansion; MRR growth can mask high churn if new sales compensate.
- Investors often weight NRR heavily — it signals product stickiness and pricing power.
When to Use Each
Use Monthly Recurring Revenue (MRR) when…
Use MRR to track absolute revenue momentum — are you growing, flat, or contracting in dollar terms month over month?
Full Monthly Recurring Revenue guide →Use Net Revenue Retention (NRR) when…
Use NRR to understand cohort-level retention and expansion. An NRR above 100% means existing customers alone are growing your revenue.
Full Net Revenue Retention guide →Formulas
MONTHLY RECURRING REVENUE (MRR)
MRR = Sum of Monthly Revenue from All Active Subscriptions
Number of Subscribers × Average Revenue Per User (ARPU)NET REVENUE RETENTION (NRR)
NRR = (Beginning MRR - Churned MRR + Expansion MRR) / Beginning MRR × 100
Charts
Monthly Recurring Revenue (MRR)
Net Revenue Retention (NRR)