Plain definition
Gross revenue retention, or GRR, measures the recurring revenue retained from a starting customer cohort before counting expansion. It subtracts churned and contracted recurring revenue from starting recurring revenue, then divides by starting recurring revenue. It therefore cannot exceed 100% under a consistent definition.
GRR differs from net revenue retention because expansion is excluded. That makes it a direct view of how well the existing revenue base is being protected, rather than whether upsells outweighed losses.
Illustrative example
Monetary examples use Saudi riyals (SAR). The same principles apply in other currencies.
Suppose a cohort starts with of MRR, loses to churn and to downgrades. GRR is 85%. Even if the remaining accounts buy of extra subscriptions, GRR stays 85%; expansion belongs in a separate line.
This prevents a successful upsell program from concealing a problem in customer value, pricing, or service for the base contract.
| Starting MRR | |
|---|---|
| Churned MRR | |
| Contracted MRR | |
| Gross-retained MRR |
| MRR retained before expansion | |
|---|---|
| Starting cohort MRR | |
| Convert to percent | |
| Gross revenue retention |
Use the same cohort, currency, movement dates, and recurring-revenue definition as the accompanying retention metrics.
Why it matters
GRR shows whether a business can preserve what it already sells. Strong new and expansion revenue can be expensive or fragile if the underlying base is eroding.
Practical consequence
Start with a frozen MRR or ARR cohort, classify each change as churn, contraction, or expansion, and exclude new customers. Reconcile movements to subscription records and show GRR beside NRR, customer retention, and account concentration. Investigate the contracts behind material contraction rather than only the aggregate percentage.