GRR (gross revenue retention): formula, calculator and 2026 benchmarks
What is GRR?
GRR (gross revenue retention) is the share of recurring revenue a company keeps from last year's customers, counting downgrades and churn but no expansion: GRR = (starting ARR − contraction − churn) ÷ starting ARR. It can't exceed 100%, and 1 − GRR is the revenue churn rate.
Key facts
- SaaS Capital's method: cap each customer's revenue at last year's level, so that "not including any "upsells," - you get Gross Revenue Retention (GRR)". (SaaS Capital, Apr 2025)
- The median private B2B SaaS company kept 91% of its revenue in SaaS Capital's 2025 survey; companies with contracts above $250,000 a year kept 95%. (SaaS Capital, 2025)
- Benchmarkit's median GRR fell from 88% in 2024 to 84% in 2025, its biggest one-year drop. (Benchmarkit, 2026)
- "Gross revenue retention" appeared in no annual report filed with the SEC in 2020 and in 7 in 2025 (our EDGAR full-text searches). (SEC EDGAR search)
- Workday reported gross revenue retention of about 97% at 30 April 2026. (Workday, 10-Q)
GRR calculator
Take the customers you had 12 months ago. Enter their ARR then and what they've cut since, through downgrades and cancellations. Expansion doesn't count toward GRR; enter it to see NRR alongside.
Want GRR by cohort from your real billing data? CX Cash is being built to track churn and downgrades by customer and segment, month by month.
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How to calculate GRR
GRR = (Starting ARR − Contraction − Churn) ÷ Starting ARR
In words: take what last year's customers paid a year ago, subtract what they cut or cancelled, and divide by the starting figure. Expansion never counts.
- Starting ARR: Recurring revenue 12 months ago from the customers in the cohort.
- Contraction: Downgrades from customers who stayed. Some companies leave this out and count only lost customers.
- Churn: The recurring revenue of customers who left.
Worked example
The same illustrative cohort as on our NRR page: $1.0M of ARR a year ago, $30,000 lost to downgrades, $50,000 to cancellations, and $180,000 of expansion that GRR ignores. The results below are computed by the calculator's tested code.
| Input | Value |
|---|---|
| ARR from the cohort 12 months ago | $1,000,000 |
| Expansion ARR (not in GRR) | $180,000 |
| Contraction ARR | $30,000 |
| Churned ARR | $50,000 |
Gross revenue retention: 92.0% Net revenue retention: 110.0%Cohort ARR today: 1,100,000
NRR = (1,000,000 + 180,000 − 30,000 − 50,000) ÷ 1,000,000 = 110.0%
GRR of 92% and NRR of 110%. The company loses 8% of its revenue base every year and needs expansion and new sales just to stand still; at 92% a year, a cohort keeps only about two-thirds of its starting revenue after five years, before any expansion (our arithmetic).
In a spreadsheet
- GRR, with starting ARR in B2, contraction in C2 and churn in D2: =(B2-C2-D2)/B2
- Cohort GRR, capping each customer at last year's ARR (B2:B500), with this year's in C2:C500: =SUMPRODUCT((C2:C500<B2:B500)*C2:C500+(C2:C500>=B2:B500)*B2:B500)/SUM(B2:B500)
- Annual revenue churn rate from GRR in B2: =1-B2
- Revenue left from a cohort after five years at GRR in B2: =B2^5
How founders and investors read GRR
If you're the founder
- GRR is the floor under your growth: how much revenue you keep before selling anything more. Every point below 100% has to be replaced by expansion or new customers.
- Investors read it with NRR. Jason Lemkin: "watch the GRR/NRR gap. If your GRR is 92% and NRR is 95%, the gap tells you exactly how thin the magic actually is" (SaaStr, 2026).
- It varies with contract size, most of all above $250,000 a year, so benchmark against companies with similar prices.
Questions you'll be asked
- Is that annual, and does it include downgrades?
- What share of churn comes from your smallest customers?
- Why do customers leave, and what has changed?
- How does GRR compare across cohorts by start year?
If you're the investor or LP
- Check what it counts. Procore's GRR "reflects only customer losses and does not reflect customer expansion or contraction"; Yext's includes contraction. The same customers give different numbers.
- Two companies with the same NRR can be very different. SaaS Capital: "Two very different stories emerge between companies that both have 150% Net Retention, if one has strong Gross Retention of 95% and the other only has 60% Gross Retention."
- Segment it. Yext's GRR is 75% for customers under $50,000 a year and 90% for larger ones.
Questions to ask the company
- Does GRR include downgrades, or only lost customers?
- Is each customer capped at its starting revenue?
- What is GRR by customer size and by product?
- How did GRR move over the last eight quarters?
What is a good GRR?
Private SaaS companies keep around 84% to 91% of revenue a year at the median, depending on the survey; enterprise software aims for 90% to 95%, and the best public companies report 97% or more. SaaS Capital calls contract size "the best starting point" for benchmarking retention.
Show the numbers
| Annual contract value | Median GRR | Median NRR |
|---|---|---|
| Under $12k | 90.0% | 98.0% |
| $12k–25k | 91.0% | 103.0% |
| $25k–50k | 91.0% | 102.0% |
| $50k–100k | 90.0% | 104.0% |
| $100k–250k | 91.0% | 102.0% |
| Over $250k | 95.0% | 106.0% |
Benchmarks
| Segment | Measure | Typical | Top quartile | As of | Sample | Source |
|---|---|---|---|---|---|---|
| Private SaaS companies · Surveys of different populations; compare a company with one of them, not across them. | ||||||
| Private B2B SaaS | Median GRR | 91% | — | Dec 2024 | More than 1,000 companies (SaaS Capital) | SaaS Capital, 2025 |
| Contracts above $250k a year | Median GRR | 95% | — | Dec 2024 | SaaS Capital survey | SaaS Capital, 2025 |
| B2B SaaS and AI-native | GRR (formula not stated) | 84% (25th percentile 76%) | 91% | CY 2025 | 226 companies (Benchmarkit) | Benchmarkit, 2026 |
| Private SaaS | Gross retention | 86% in 2023; approaching 90% | — | Nov 2025 | KeyBanc and Sapphire survey (press release) | KeyBanc & Sapphire, 2025 |
| Rules of thumb | ||||||
| Enterprise software | Gross retention to aim for | 90%–95% | — | Mar 2024 | Practitioner view (Jamin Ball) | Ball, 2024 |
| Cloud companies by ARR range | Gross retention | 85%–90% at every range | — | Sep 2021 | Bessemer portfolio | Bessemer, 2021 |
GRR is falling. Benchmarkit calls the drop from 88% to 84% "the most significant single-year deterioration" in its data, with the 25th percentile down from 81% to 76%.
Billing-data samples of small, self-serve companies run far lower: in ChartMogul's 2025 data AI-native companies had GRR of 40% (ChartMogul), while a survey summarized by Ray Rike put AI-native GRR at 89% (Rike). Samples and methods differ, so treat both with care.
Compiled Oct 2, 2026. Next review: December 2026, after SaaS Capital's 2026 retention report. Left out: High Alpha 2025 by ARR band (Marked proprietary and confidential; we don't reproduce its tables); ICONIQ 2026 (The report prohibits reproduction, and its GRR data covers only its top-growth cohort). Download these benchmarks as CSV.
GRR in the wild: what public companies keep, and what they count
The latest gross retention each company reported, with what its definition counts. Same name, different scope. (Procore, 10-K)
| Company | GRR | As of | What it counts | Source |
|---|---|---|---|---|
| Clearwater Analytics | 98% or more | 27 of the last 28 quarters | Gross revenue retention rate | 10-K |
| Workday | About 97% | 30 Apr 2026 | ARR lost to product or customer churn | 10-Q |
| Workiva | 97.2% (NRR 112.8%) | 31 Dec 2025 | Gross retention rate | 10-K |
| DoubleVerify | Over 95% | 2022–2025 | Prior-year revenue less lost customers | 10-K |
| Procore | 95% | 31 Dec 2025 | Lost customers only; no contraction | 10-K |
| Vertex | 94% (NRR 105%) | 2025 | Monthly MRR, including downgrades and reduced usage | 10-K |
| Blackbaud | About 92% | 2025 | Contracted ARR over beginning contracted ARR | 10-K |
| Weave | 89% (NRR 93%) | 2025 | Terminated locations only; no contraction | 10-K |
| Yext | 88% (75% under $50k, 90% above) | 31 Jan 2026 | ARR including contraction and churn | 10-K |
From 88% to 98%, on at least four bases: ARR, MRR, revenue and contracted ARR. Procore and Weave count only customers who leave, so downgrades never lower their figure; Yext and Vertex count downgrades too. Yext shows how much size matters: 75% for small customers, 90% for large ones.
Figures and definitions are each company's own, as filed. SEC filings were read from archived copies because sec.gov blocks automated access; the links go to EDGAR.
GRR vs NRR, revenue churn and logo churn
| Metric | Answers | Ignores | Use it when | It misleads when |
|---|---|---|---|---|
| GRR | Revenue kept from existing customers, before expansion | Upsells, cross-sells and price increases | Measuring how leaky the base is | It counts only lost customers and downgrades are heavy |
| NRR | Revenue kept and grown from existing customers | How expansion and losses net out | Judging the strength of the installed base | Expansion from a few customers hides churn |
| Revenue churn rate | Share of revenue lost, usually per month | Expansion | Monthly tracking | A monthly rate is set against an annual one |
| Logo churn | Share of customers lost | How big those customers were | Product fit and small-customer businesses | A few large customers drive revenue |
Annual revenue churn = 1 − GRR, and NRR = GRR + expansion as a share of starting ARR. GRR can never be higher than NRR: in SaaS Capital's words, "GRR is always strictly less than or equal to NRR."
Common mistakes: how GRR gets flattered
- Letting expansion offset losses. Capping each customer at last year's revenue is what makes GRR gross. Sum across customers before capping and one big upsell hides several cancellations.
- Counting only lost customers. Logo-loss GRR ignores downgrades, which can be large when customers cut seats. Say which you measure; Procore and Weave measure lost customers only.
- Comparing monthly and annual figures. 0.5% monthly churn and 95% annual GRR aren't the same thing. Compound the monthly figure, or measure annually.
- Ignoring contract size. Companies selling small contracts lose more customers. Benchmark against companies with similar annual contract values.
- Treating a high GRR as growth. A 97% GRR means you keep revenue, not that you grow it. Lemkin warns that high NRR, built on top of GRR, can hide weak new sales.
Where GRR came from and how it's regarded today
| When | What happened | Source |
|---|---|---|
| Jun 2026 | Benchmarkit reports median GRR falling from 88% to 84%, its biggest one-year drop. | Benchmarkit, 2026 |
| Nov 2025 | KeyBanc and Sapphire expect gross retention to approach 90% after falling to 86% in 2023. | KeyBanc & Sapphire, 2025 |
| Sep 2025 | SaaS Capital puts the private-company median at 91%, and 95% for contracts above $250,000. | SaaS Capital, 2025 |
| 2025 | "Gross revenue retention" appears in 7 annual reports filed with the SEC, after none in 2020. | SEC EDGAR search |
| Mar 2025 | Jason Lemkin relays that pre-IPO investors "are now more interested in GRR" than NRR. | Lemkin, 2025 |
| Sep 2021 | Bessemer finds gross retention consistent at 85% to 90% across ARR ranges. | Bessemer, 2021 |
| Mar 2016 | SaaS Capital calls gross churn and retention "The metric gaining widespread adoption". | SaaS Capital, 2016 |
How it's regarded today
- Falling at the bottom. Benchmarkit's 25th percentile fell from 81% to 76% in a year, "highlighting structural headwinds for every B2B SaaS company".
- The gap to NRR is the story. Investors read GRR with NRR to see how much growth comes from existing customers and how much is lost underneath.
- AI-native retention is contested. Billing data and surveys disagree sharply on AI-native companies' GRR, 40% against 89%, because they sample very different companies.
- 2025 B2B SaaS Retention Benchmarks (Research Brief 32) (SaaS Capital, 2025). GRR and NRR for more than 1,000 private B2B SaaS companies by contract value, funding and contract length.
- GRRumbling About Retention Metrics, or, Pitfalls in Measuring SaaS Churn (SaaS Capital, Apr 2025). How to compute GRR per customer, and why it can never exceed NRR.
- 2026 SaaS and AI Metrics Benchmarks (Benchmarkit, 2026). GRR quartiles for 2025 and the trend since 2022.
- Full-text searches for "gross revenue retention" in 10-K filings, by year (SEC EDGAR search). When gross retention entered SEC filings and how often it is reported.
What experts say about GRR
“Enterprise software businesses strive for 90-95% gross retention (generally the percent of revenue that sticks with you vs churns altogether), with net expansion in the 120%+ range”
“And watch the GRR/NRR gap. If your GRR is 92% and NRR is 95%, the gap tells you exactly how thin the magic actually is.”
“GRR is always strictly less than or equal to NRR.”
Where they disagree
Two practitioners on whether gross or net retention matters more.
“High NRR is key to compounding in SaaS. It should be one of your Top 5 metrics. Mathematically, it's more important than GRR.”
“Number one is growth rate - that still has the highest correlation to enterprise value creation, even at businesses doing >$100MM in revenue. Number two is CAC Ratio. Number three is gross revenue retention. Number four is net revenue retention.”
GRR FAQ
What is gross revenue retention?
GRR is the share of last year's recurring revenue you still have from the same customers, after downgrades and cancellations but without counting any upsells. It shows how leaky the revenue base is.
How do you calculate GRR?
Take last year's customers and their ARR then. Subtract what they cut through downgrades and cancellations, and divide by the starting ARR: ($1.0M − $30,000 − $50,000) ÷ $1.0M = 92%. Cap each customer at its starting revenue so that upsells don't offset losses.
What is a good GRR?
Around 90% or more. Private SaaS medians were 84% to 91% in recent surveys, enterprise software aims for 90% to 95%, and companies selling contracts above $250,000 a year had a 95% median.
What is the difference between GRR and NRR?
NRR adds expansion from existing customers; GRR doesn't. NRR can be above 100%, GRR never is. The difference between them is how much existing customers grew.
Can GRR be more than 100%?
No. Because expansion is excluded, the best a company can do is keep all of last year's revenue, which is 100%.
How does GRR relate to churn rate?
Annual revenue churn is 1 − GRR: 92% GRR means 8% of revenue lost in a year. Monthly churn rates have to be compounded before comparing.
Does GRR include downgrades?
Usually, but not always. Some companies, such as Procore and Weave, count only customers who leave; others, such as Yext and Vertex, include downgrades. Check before comparing.
Related metrics and guides
Sources
Every link was opened and checked. Archived copies guard against links that move or disappear.
Primary data
- Full-text searches for "gross revenue retention" in 10-K filings, by year. US Securities and Exchange Commission (EDGAR), Queried 2 Oct 2026. Our queries; counts are documents matching the exact phrase.
- Form 10-Q for the quarter ended 30 April 2026. Workday (SEC filing), 22 May 2026. Read from the archived copy. Archived copy
- Form 10-K for the fiscal year ended 31 December 2025. Clearwater Analytics (SEC filing), 18 Feb 2026. Read from the archived copy. Archived copy
- Form 10-K for the fiscal year ended 31 December 2025. Workiva (SEC filing), 19 Feb 2026. Read from the archived copy. Archived copy
- Form 10-K for the fiscal year ended 31 December 2025. DoubleVerify (SEC filing), 26 Feb 2026. Read from the archived copy. Archived copy
- Form 10-K for the fiscal year ended 31 December 2025. Procore Technologies (SEC filing), 24 Feb 2026. Read from the archived copy. Archived copy
- Form 10-K for the fiscal year ended 31 December 2025. Vertex Inc. (SEC filing), 24 Feb 2026. Read from the archived copy. Archived copy
- Form 10-K for the fiscal year ended 31 December 2025. Blackbaud (SEC filing), 18 Feb 2026. Read from the archived copy. Archived copy
- Form 10-K for the fiscal year ended 31 December 2025. Weave Communications (SEC filing), 5 Mar 2026. Read from the archived copy. Archived copy
- Form 10-K for the fiscal year ended 31 January 2026. Yext (SEC filing), 10 Mar 2026. Read from the archived copy. Archived copy
- 2025 B2B SaaS Retention Benchmarks (Research Brief 32). SaaS Capital, Sep 2025. Lender's survey; chart figures read from the PDF; no archived copy found.
- 2026 SaaS and AI Metrics Benchmarks. Benchmarkit, 1 Jun 2026. Sponsored report; formula not stated. Archived copy
- Private SaaS Company Survey Reveals AI-Driven Transformation and Sustained Operational Excellence. KeyBanc Capital Markets (press release), 13 Nov 2025. Press release; the full survey is gated. Archived copy
- The SaaS Retention Report: The AI churn wave. ChartMogul (Kyle Poyar), 10 Dec 2025. Vendor billing data; not comparable with surveys. Contested. Archived copy
Practitioner
- Gross Revenue Retention (GRR). SaaS Metrics Standards Board, Undated. Industry body, not an accounting standard setter. Archived copy
- Why Gross Churn/Retention is the Preferred Standard for Measuring SaaS Retention. SaaS Capital, 24 Mar 2016. Archived copy
- GRRumbling About Retention Metrics, or, Pitfalls in Measuring SaaS Churn. Randall Lucas (SaaS Capital), 8 Apr 2025. Archived copy
- Scaling to $100 Million. Mary D'Onofrio and Ethan Ding (Bessemer Venture Partners), 21 Sep 2021. Archived copy
- Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today. Jamin Ball (Clouded Judgement), 22 Mar 2024. Newsletter. Archived copy
- Is GRR More Important Than NRR? Probably. Jason Lemkin (SaaStr), Updated 17 Mar 2025. Practitioner opinion; the Salesloft view is relayed second-hand. Archived copy
- High NRR is Magic. It Can Also Hide a Lot of Problems.. Jason Lemkin (SaaStr), 21 May 2026 (updated). Practitioner opinion; no archived copy found.
- SaaS Perspectives: Ray Rike (Benchmarkit & SaaS Barometer). Bowery Capital (interview by Patrick McGovern), 15 Jan 2025. Interview; no archived copy found.
- Beyond Benchmarks 2025. Ray Rike (The SaaS Barometer), 24 Jun 2025. Summary of survey data; contested against billing data. Contested.
Changes to this page
- · Major · Page published. Benchmarks and filings compiled 2 October 2026.
Cite this page
Dominique Bouillet, "GRR (gross revenue retention): formula, calculator and 2026 benchmarks", CX Cash, updated Oct 21, 2026, https://cxcash.com/metrics/grr
CX Cash builds software for founders and investors. This page is education, not investment advice. Third-party figures link to their source, and our own arithmetic and illustrative examples are labelled as such.