Alp SuleimanGrowth Partner

Benchmarks

What is a good NRR?

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Short answer

A good NRR depends on the segment. In SaaS Capital's 2025 survey the median NRR of private B2B SaaS companies is 101%. By Lenny Rachitsky's compilation, enterprise SaaS sits at roughly 110% for good and roughly 130% for great; SMB and mid-market thresholds are roughly 90% and 110%. These are reference points, not targets.

Ranges by segment

SegmentRangeContext
Bottom-up SaaS (Slack, Figma type)Good ~100% · great ~120%1Products individual employees adopt on their own; 12-month.
Very small business, land and expandGood ~80% · great ~100%112-month.
SMB / mid-market, land and expandGood ~90% · great ~110%112-month.
Enterprise SaaSGood ~110% · great ~130%112-month.
Consumer SaaSGood ~55% · great ~80%112-month.
Private B2B SaaS, all companiesMedian 101%22025 survey; companies above $1M ARR.
Private B2B SaaS, ACV $25-50kMedian 102% (bottom quartile 97%, top quartile 111%)2The range is wide even within one ACV band.
By contract lengthMulti-year 103% · annual 101% · monthly 100%2Median NRR; longer contracts sit slightly higher.

Reminder: These ranges are reference points, not targets. Your segment, contract structure and stage change the number.

NRR

How to read it

  • NRR is today's revenue from customers you had a year ago, divided by their revenue back then; upsell, cross-sell and price increases are included. New customers are not counted.
  • Above 100% means existing customers more than cover their losses. In SaaS Capital's data, companies moving from the 100-110% band to the 110-120% band show median growth 9 percentage points higher.
  • High NRR can hide weak gross retention. Read NRR together with gross revenue retention: one is growth, the other is leakage.

What moves this metric

  • 01

    Expansion revenue

    Seats, usage and upgrades. The product has to scale with the growing customer.

  • 02

    Gross retention

    Without reducing losses, expansion becomes a bucket that never fills. Close the leak first.

  • 03

    Pricing model

    Usage- or seat-linked pricing raises revenue by itself as the customer grows.

  • 04

    Contract structure

    Multi-year contracts are associated with slightly higher NRR in SaaS Capital's data.

Calculate your own

NRR calculatorGlossary term: Churn and NRR →

Frequently asked

Is a company bad if NRR is below 100%?

Not always. Below 100% is common for products selling to very small businesses; in Lenny's table the good threshold for that segment is roughly 80%. What matters is your position within your own segment, and its direction.

What is the difference between NRR and GRR?

GRR counts only losses and downgrades and cannot exceed 100%. NRR adds upsell, cross-sell and price increases. Together they show both leakage and growth.

How do I calculate NRR?

Divide today's monthly revenue from people who were customers a year ago by their total monthly revenue back then. New customers enter neither number. The calculator does these steps for you.

Sources

  1. 1.Lenny Rachitsky, “What is good retention?” (Lenny's Newsletter, 20 growth practitioners plus public company data)Year and scope: 2020. User retention: share of signups still active after 6 months. Net revenue retention: 12-month. Consumer and B2B SaaS categories.
  2. 2.SaaS Capital, 2025 B2B SaaS Retention Benchmarks (Research Brief 32)Year and scope: 2025. 1,000+ private B2B SaaS companies ($1M+ ARR), December 2023 to December 2024 customer cohort. Medians by ACV, contract length and funding type.