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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: 25% lower
Change starting recurring revenue to 37,500 while keeping the other example values the same.
Starting recurring revenue: 25% higher
Change starting recurring revenue to 62,500 while keeping the other example values the same.
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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
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- 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.
Calculates net dollar retention as beginning ARR, plus expansion ARR, minus churn that includes contractions, divided by beginning ARR. This page splits that churn term into contraction and churned revenue and subtracts both.
Beginners’ guide to financial statementsUS Securities and Exchange CommissionScope: General investor education; US sourceWalks an income statement from sales to cost of sales, then to gross profit, operating expenses, and the bottom-line net earnings.
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
37,500108%of starting recurring revenue
Starting recurring revenue: 25% higher
62,500104.8%of starting recurring revenue
Expansion: 25% higher
10,000110%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
What share of starting recurring revenue remains after expansion and churn?
It does not replace a quote, contract, accountant, or local employment guidance.