Work & small business · 392

Net revenue retention calculator

What share of starting recurring revenue remains after expansion and churn?

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Examples, chart, and saved snapshots

Start with a realistic example, adjust the inputs, or save your numbers before experimenting.

Example 1

50,000 of starting recurring revenue

Starting recurring revenue is 50,000. Expansion from that same base is 8,000. Contraction is 2,000. Churned revenue is 3,000. Use one period for every box, monthly or annual.

106%of starting recurring revenue
Example 2

Starting recurring revenue: 25% lower

Change starting recurring revenue to 37,500 while keeping the other example values the same.

108%of starting recurring revenue
Example 3

Starting recurring revenue: 25% higher

Change starting recurring revenue to 62,500 while keeping the other example values the same.

104.8%of starting recurring revenue

Interactive chart

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Result—

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Quick answer

What does the Net revenue retention calculate?

What share of starting recurring revenue remains after expansion and churn? This calculator uses starting recurring revenue, expansion, contraction, and churned revenue to estimate revenue kept from the same customers immediately in your browser.

With the values currently entered, the result is 106% — of starting recurring revenue. It also shows ending cohort revenue, retention before expansion, expansion, and revenue lost.

How to use the Net revenue retention

  1. Replace the example values with your own numbers.
  2. Review the result and supporting figures as they update automatically.
  3. Check the formula and assumptions before using the estimate for a decision.

Inputs used

  • Starting recurring revenue
  • Expansion
  • Contraction
  • Churned revenue

Net revenue retention formula

Ending cohort revenue = starting + expansion − contraction − churn. Net revenue retention = ending ÷ starting. Retention before expansion leaves expansion out.

Assumptions

  • Definitive Healthcare’s Form 10-K calculates net dollar retention as beginning ARR plus expansion, minus churn that includes contractions, divided by beginning ARR.
  • This page subtracts contraction and churn as two amounts. Keep new-customer revenue out of every box, and use one period for all four amounts.

Verify the inputs

Authoritative sources

These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.

Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.

Practical guide

Net revenue retention example and edge cases

Definitive Healthcare’s Form 10-K calculates net dollar retention as beginning ARR, plus expansion, minus a churn term that includes contractions, divided by beginning ARR. This page uses that identity on the recurring revenue you type. Contraction and churn are separate boxes, and both are subtracted. Keep new customers out of every box.

Example: 50,000 of starting recurring revenue

Starting recurring revenue is 50,000. Expansion from that same base is 8,000. Contraction is 2,000. Churned revenue is 3,000. Use one period for every box, monthly or annual.

Starting recurring revenue
50,000
Expansion
8,000
Contraction
2,000
Churned revenue
3,000

Calculated result106%of starting recurring revenue

Ending revenue from that base is 53,000. Net revenue retention is 106 percent. Retention before expansion, which leaves the 8,000 out, is 90 percent.

Example results use the default display profile. The calculator above follows your selected country and units.

How to read the result

  • Read the retention percent first. A figure above 100 percent means expansion from the starting customers exceeded the revenue they lost. The ending cohort line is that percent turned back into dollars.
  • Retention before expansion ignores the 8,000 of expansion. It can sit under 100 percent while net retention sits above it. The two lines answer different questions.

Edge cases worth checking

New customers are sitting in the expansion box

Expansion is extra recurring revenue from customers who were already in the starting 50,000. A new logo belongs in a new-business total. Putting it here lifts retention for a cohort that did not include them.

The four revenue boxes cover different months

The 10-K identity uses one period. Starting revenue from January and churn from the full year do not describe the same cohort. Match the window before you read 106 percent as a result.

What changes the result most

Starting recurring revenue

Use a current amount for starting recurring revenue. Include fees or recurring costs that belong in the same figure.

Expansion

Use a current amount for expansion. Include fees or recurring costs that belong in the same figure.

Contraction

Use a current amount for contraction. Include fees or recurring costs that belong in the same figure.

Try a different scenario

Small changes show whether the answer is stable or sensitive.

Starting recurring revenue: 25% lower

37,500

108%of starting recurring revenue

Starting recurring revenue: 25% higher

62,500

104.8%of starting recurring revenue

Expansion: 25% higher

10,000

110%of starting recurring revenue

Common mistakes

Check starting recurring revenue

Definitive Healthcare’s Form 10-K calculates net dollar retention as beginning ARR plus expansion, minus churn that includes contractions, divided by beginning ARR. Make sure this matches the number you enter.

Keep churned revenue consistent

This page subtracts contraction and churn as two amounts. Keep new-customer revenue out of every box, and use one period for all four amounts. Use the same units and time period throughout the calculation.

Do not rely on one net revenue retention scenario

Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.

Use this result well

Use it for

What share of starting recurring revenue remains after expansion and churn?

Do not use it as

It does not replace a quote, contract, accountant, or local employment guidance.