> ## Documentation Index
> Fetch the complete documentation index at: https://docs2.zenskar.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Gross revenue retention

> 🔖 Definition
>
> Gross revenue retention (GRR) is a metric that measures how much recurring revenue you retain from your existing customers over a given period, excluding any new revenue from upsells, cross-sells, or expansions.

<Cards columns={0}>
  <Card title="Prerequisite" href="https://docs.zenskar.com/docs/monthly-recurring-revenue" icon="fa-book" target="_blank">
    Monthly recurring revenue (MRR) is the predictable revenue a business can expect each month from active subscriptions.
  </Card>
</Cards>

## Formula

```
GRR = ((Starting MRR - Contraction MRR - Churned MRR) / Starting MRR) × 100
```

## Importance

GRR measures pure retention without the influence of upsells or add-ons. It helps you understand how much recurring revenue is retained from existing customers.

* A GRR of 100% means you retained all revenue from existing customers (no downgrades or churn).
* A GRR below 100% indicates some revenue loss due to downgrades or customer exits.
* Unlike NRR, GRR never exceeds 100% because it does not include expansion.

## Visualizations

### GRR chart

<Image align="center" src="https://files.readme.io/0e9be984736666f9ba366b169a2f493212f2445c4fd29c01ed69c6076927e799-Screenshot_From_2025-07-09_15-57-10.png" />

#### Description

The GRR chart shows how much recurring revenue is retained from existing customers, excluding expansion revenue.

#### Chart components

* **X-axis**: Each month from July 2024 to May 2025.
* **Y-axis**: The GRR percentage from 0% to 100%.
* **Data points**: Each data point represents the GRR for a given month.

#### Interpretation & insights

* From July to October 2024, GRR stayed close to 100%, suggesting stable customer retention.
* In December 2024 and February 2025, GRR dipped—likely due to a combination of churn or downgrades.
* The overall trend remains strong, showing consistent performance in retaining base revenue over time.

### GRR table

<Image align="center" src="https://files.readme.io/38440d1b03f7d5c6eed61d102d1c4a0d9c015e91914e9c781d793907292d0d24-Screenshot_From_2025-07-09_16-03-05.png" />

| Column                  | Description                                                                                                                    |
| ----------------------- | ------------------------------------------------------------------------------------------------------------------------------ |
| **Posting Date: Month** | The month for which the GRR is calculated.                                                                                     |
| **Starting MRR**        | Monthly recurring revenue at the start of the month, from existing customers.                                                  |
| **Contraction MRR**     | Revenue lost due to downgrades (customers paying less for the same product/service).                                           |
| **Churn MRR**           | Revenue lost due to complete cancellations.                                                                                    |
| **GRR**                 | Gross Revenue Retention for the month, calculated as:\<br> `(Starting MRR - Contraction MRR - Churn MRR) ÷ Starting MRR × 100` |

#### Interpretation & insights

* **June 2025**:
  * Starting MRR: \$191,207.51
  * Contraction: -\$3,273.67
  * Churn: -\$3,258.32
  * GRR = 96.58% → Indicates 3.42% revenue was lost from existing customers.
* **May 2025**:
  * No contraction or churn → GRR = 100%
* **February 2025**:
  * High churn (\$4,220.5) → GRR = 95.52%, a noticeable dip in retention.

## Related concepts

Use GRR alongside NRR to get a fuller picture:

* GRR helps measure revenue stability.
* NRR helps measure growth from your existing base.