> ## Documentation Index
> Fetch the complete documentation index at: https://relate.so/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Net Revenue Retention (NRR)

> Net Revenue Retention (NRR) measures how much revenue you have today compared to what you had one year ago.

## What is Net Revenue Retention (NRR)?

Net Revenue Retention (NRR) measures how much revenue you have today compared to what you had one year ago. NRR is a metric that measures a company's ability to retain customers and continue to generate revenue. NRR is typically calculated as follows.

<Card title="NRR Formula" icon="lightbulb" iconType="duotone">
  NRR = (Net Revenue from Retained Customers - Net Revenue from Churned
  Customers) / Total Net Revenue
</Card>

The higher the NRR, the better a company's ability to retain customers. In SaaS industry, if you are over 100% NRR, that means you are growing. 120% NRR is considered best in class.