Gross Retention Rate Calculator Formula
Understand the math behind the gross retention rate calculator. Each variable explained with a worked example.
Formulas Used
Gross Retention Rate
grr = starting_mrr > 0 ? ((starting_mrr - churned_mrr - contraction_mrr) / starting_mrr) * 100 : 0Retained MRR
retained_mrr = starting_mrr - churned_mrr - contraction_mrrTotal MRR Lost
total_lost = churned_mrr + contraction_mrrVariables
| Variable | Description | Default |
|---|---|---|
starting_mrr | Starting MRR(USD) | 200000 |
churned_mrr | Churned MRR (cancellations)(USD) | 8000 |
contraction_mrr | Contraction MRR (downgrades)(USD) | 4000 |
How It Works
How to Calculate Gross Revenue Retention
Formula
GRR = (Starting MRR - Churned MRR - Contraction MRR) / Starting MRR x 100
Gross retention strips out expansion revenue to show the floor of your retention performance. It can never exceed 100% because it only accounts for losses. GRR reveals how well your product delivers baseline value: if customers keep paying the same amount or leave, how much revenue survives? Top-tier B2B SaaS companies maintain GRR above 90%.
Worked Example
A company starts with $200,000 MRR, loses $8,000 to cancellations and $4,000 to downgrades.
starting_mrr = 200000churned_mrr = 8000contraction_mrr = 4000
- 01Retained MRR = $200,000 - $8,000 - $4,000 = $188,000
- 02GRR = ($188,000 / $200,000) x 100 = 94%
- 03Total Lost = $8,000 + $4,000 = $12,000
Ready to run the numbers?
Open Gross Retention Rate Calculator