What is GRR?
GRR (Gross Revenue Retention) is the share of recurring revenue from existing customers that a company keeps over a period. It only counts losses: cancellations (churn) and downgrades. Expansion does not count, so GRR can never exceed 100%.
GRR shows how well you hold on to what you already have. It is often used alongside NRR, which also includes expansion.
How to calculate GRR
GRR = (starting MRR - churn - downgrades) ÷ starting MRR × 100
Only use revenue from the customers you had at the start of the period. New customers in the period are excluded. The formula works with MRR or ARR, as long as you use the same basis throughout.
Example
| Item | Amount |
|---|---|
| MRR from existing customers at start | $80,000 |
| Churn (cancelled customers) | -$4,800 |
| Downgrades | -$1,200 |
| Expansion (not counted in GRR) | +$8,000 |
GRR = ($80,000 - $4,800 - $1,200) ÷ $80,000 × 100 = 92.5%.
NRR for the same period, with expansion included, is ($80,000 + $8,000 - $4,800 - $1,200) ÷ $80,000 × 100 = 102.5%. The gap shows that expansion more than covers the losses, but 7.5% of revenue still disappears.
GRR vs. NRR vs. churn
| Metric | Includes | Can exceed 100%? |
|---|---|---|
| GRR | Churn and downgrades | No |
| NRR | Churn, downgrades and expansion | Yes |
| Churn rate | Lost revenue or lost customers | Not applicable, it measures loss |
With usage-based pricing, a drop in usage counts as a downgrade, so GRR can move more. See usage-based commission.
GRR in commission and bonus plans
- Account managers and customer success: GRR is a natural target for roles that retain customers, for example a bonus paid when portfolio GRR is above an agreed level.
- Gates: some plans require a minimum GRR before commission on expansion is paid, so expansion does not hide lost customers.
- Renewals: GRR is closely linked to renewal commission, since both are about keeping existing revenue.
FAQ
What is the difference between GRR and NRR?
GRR only counts losses from existing customers. NRR also counts expansion. NRR is therefore always at least as high as GRR for the same period.
Can GRR be above 100%?
No. GRR excludes expansion, so the best possible result is 100%, where no customers cancelled or downgraded.
Should GRR be measured monthly or annually?
Both are used. Annual GRR is often used in reporting, while monthly GRR gives faster signals. Pick one definition and use it consistently.
Retention targets in Prowi
Prowi calculates commission and bonuses live from CRM and invoice data and shows reps the amount in the mobile app. If your plan has retention targets, account managers can follow their numbers through the period instead of waiting for the statement. Book a demo.
In Prowi
Every term on this page is a rule you can write into a commission model in Prowi. The model reads the deal from HubSpot the second it closes, applies the rule, and the rep sees the result on their phone before the day is over.