📊 2025 Benchmark Data

Net Revenue Retention (NRR) Benchmark

The metric that reveals whether your customers love you enough to pay more over time—or quietly leave.

TL;DR

B2B SaaS Net Revenue Retention (NRR) benchmarks: Best-in-class >130%, Good 100-120%, Concerning <100%. Median NRR for venture-backed SaaS is 106% (ChartMogul 2024, N=2,100). Enterprise segments achieve 115-125% due to expansion; SMB typically 90-105%. NRR >100% means you can grow without acquiring new customers. Source: Optifai Sales Ops Benchmark 2025 cross-referenced with public filings.

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Why NRR > Gross Revenue Retention (GRR)

GRR only tells you what you're losing. NRR tells you what you're actually keeping after expansion. A company with 90% GRR and strong expansion can hit 115% NRR—meaning they grow 15% annually from existing customers alone, before any new sales.

GRR (Gross)
Measures retention only. Ignores expansion. Maximum = 100%.
NRR (Net)
Includes expansion. Can exceed 100%. Shows true customer value trajectory.

NRR Benchmarks by Customer Segment

SegmentMedian NRRTop QuartileKey Driver
Enterprise
ACV >$100K
118%>130%Seat expansion, module upsells
Mid-Market
ACV $25K-$100K
108%>120%Usage-based pricing, tier upgrades
SMB
ACV <$25K
97%>105%Limited expansion; focus on retention

Source: Optifai analysis of 939 B2B companies (2025), cross-referenced with ChartMogul Subscription Growth Benchmark 2024 (N=2,100).

The NRR Formula, Explained

Net Revenue Retention =
(Starting MRR + Expansion − Contraction − Churn) / Starting MRR

Worked Example: SaaS Company "CloudMetrics"

CloudMetrics started January with $1M MRR from 200 existing customers. Here's what happened:

  • +$80,000 expansion: 40 customers upgraded plans, 15 added seats
  • −$15,000 contraction: 10 customers downgraded due to team layoffs
  • −$30,000 churn: 8 customers canceled (mostly SMB, average $3,750 MRR each)
CloudMetrics NRR Calculation:
NRR = ($1,000,000 + $80,000 − $15,000 − $30,000) / $1,000,000
NRR = $1,035,000 / $1,000,000 = 103.5%

CloudMetrics grows 3.5% monthly from existing customers alone—43% annualized, before any new sales.

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The 100% NRR Trap: When "Good" Isn't Good Enough

Here's a perspective most benchmark reports won't tell you: 100% NRR can mask serious problems.

A company with 100% NRR might have 20% churn offset by 20% expansion. Sounds balanced? It's not. You're churning a fifth of your customer base annually while desperately upselling the rest just to break even. That's a treadmill, not a growth engine.

What to look at instead:
  • GRR separately: If GRR <85%, you have a churn problem that expansion is hiding
  • Expansion source: Are upgrades organic (product love) or forced (price increases)?
  • Cohort NRR: Does NRR decay over customer lifetime? Year 1 customers vs. Year 3+

NRR by SaaS Category

Infrastructure/DevOps
125%
Vertical SaaS
118%
Sales & Marketing
110%
HR/Collaboration
105%
SMB-Focused
95%

Note: Public company NRR is often higher than private company averages due to survivorship bias and reporting incentives.

5 Levers to Improve NRR

1

Usage-based pricing with expansion triggers

+5-15% NRR

Set thresholds where customers naturally upgrade as they grow. When usage hits 80% of tier limit, prompt upgrade—don't wait for complaints.

2

Quarterly Business Reviews (QBRs) with ROI proof

+3-8% NRR

Every 90 days, show customers the value they've received. Tie feature usage to outcomes they care about. Make expansion a natural next step, not a sales pitch.

3

Product-led expansion paths

+10-20% NRR

Build features that become more valuable with more users/data. Think: Slack channels, Figma projects, Notion workspaces. Single-player to multiplayer expansion.

4

Proactive churn intervention at risk signals

+2-5% NRR

Don't wait for cancellation requests. Monitor login frequency, feature adoption, support sentiment. Intervene 30-60 days before typical churn triggers.

5

Annual contracts with mid-term expansion options

+5-10% NRR

Annual billing reduces churn touchpoints. Include a clause allowing mid-contract upgrades at pro-rated pricing. Customers appreciate flexibility.

TEAM EFFICIENCY

Small team? Detect signals, auto-act, zero missed deals.

Turn intent into action before competitors even notice.

Predict Expansion & Churn Before They Happen

Optifai monitors customer health signals and triggers actions automatically—upsell nudges for engaged customers, intervention for at-risk accounts.

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Update History

Data last updated: November 25, 2025

v1.0November 25, 2025
  • Initial release of NRR benchmark page
  • Cross-referenced data from Optifai benchmark (N=939) and ChartMogul (N=2,100)
  • Added segment-specific benchmarks and worked calculation example
  • Included "The 100% NRR Trap" limitations section

Impacted metrics:

Net Revenue Retention by segment

Regularly updated with latest industry data