ClarityHow to use this tool
- Enter starting recurring revenue, expansion revenue, contraction revenue, churned revenue.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Starting recurring revenue | Numeric value. Unit: money. Must be greater than zero. | 10000 |
| Expansion revenue | Numeric value. Unit: money. Zero or positive. | 2000 |
| Contraction revenue | Numeric value. Unit: money. Zero or positive. | 500 |
| Churned revenue | Numeric value. Unit: money. Zero or positive. | 1000 |
Result for these sample inputs
105 %
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
NRR = (starting + expansion − contraction − churn)/starting × 100%.
Using starting recurring revenue = 10000 money, expansion revenue = 2000 money, contraction revenue = 500 money, churned revenue = 1000 money, the result is 105 %. Change these example inputs to match your task; use the method above to check each step.
What to keep in mind
Use one starting customer cohort. Exclude revenue from newly acquired customers. Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.
Methodology maintained by ClarityKit. How these tools are built and checked.