What is a good net revenue retention (NRR) for SaaS?
Net Revenue Retention measures revenue kept and expanded from existing customers over a year, excluding new sales. Healthy SMB SaaS sits at 95-105%, mid-market 105-115%, enterprise 110-125%. Below 90% (SMB) is a red flag — you leak revenue faster than you expand it. Over 100% means you grow without selling.
What is net revenue retention (nrr)?
NRR (also called NDR) = revenue this year from last year’s customers ÷ their revenue last year, including expansion and contraction but excluding new logos. Over 100% means expansion outweighs churn — the holy grail of SaaS.
Healthy annual NRR by segment
| Segment / stage | Healthy | Red flag |
|---|---|---|
| SMB | 95-105% | < 90% |
| Mid-market | 105-115% | < 100% |
| Enterprise | 110-125% | < 105% |
How to improve NRR
- Build expansion paths: seats, usage tiers, add-ons that grow with the customer.
- Reduce churn first — you cannot expand customers who leave.
- Target a segment that naturally expands (teams that grow) rather than one-seat tools.
- Track NRR by cohort to see whether retention is improving over time.
FAQ
What does NRR over 100% mean?
It means expansion revenue from existing customers more than offsets churn — your revenue grows even with zero new customers. That is a strong signal of product-market fit.
Is NRR the same as gross retention?
No. Gross retention caps at 100% (it ignores expansion). NRR includes expansion, so it can exceed 100%.
See where your numbers land.
Startkeel checks your net revenue retention (nrr) against these ranges and tells you if your SaaS holds up.
Last updated: June 25, 2026. Ranges based on Startkeel’s benchmark set for early-stage SaaS. For information only — not financial advice.