Click into a calculator to begin measuring the impact of your Customer Success organization.
Your customers are renewing/expanding at a rate of:
Your customers are churning at rate of:
Ways to Improve Net Renewal Rate (NRR)
Monitor Customer Health
Ensure customers are seeing the benefits of your product through usage and behavior.
Detect New Opportunities
Stay informed on new expansion opportunities so your team can act quickly and grow revenue.
Forecast What’s Ahead
Combine insights from across your tech stack to see the likliness of customers churning.
Frequently Asked Questions
How do I calculate Net Renewal Rate (NRR)?
Customer Success teams use Net Renewal Rate (NRR) to gain a greater overall picture of revenue health of their Customer Success organization. In order to calculate NRR, you will first need to indicate a time frame to measure. From there, record what your forecasted renewal-based revenue, as well as how much renewal and expansion revenue has been secured.
To calculate your organization’s NRR:
(Renewal Revenue + Expansion Revenue)/Forecasted Renewal Revenue
Once you have that number, multiply it by 100 to determine your Net Renewal Rate.
An NRR of 100% indicates that you’re breaking even between renewals and expansions, while anything below 100% indicates losses in revenue.
How do I measure Churn Rate?
Your Churn Rate is the measurement to determine the percentage of customers that are leaving your book of business. The percentage of Churn Rate is also the inverse of your Retention Rate, so you can easily determine both metrics from a single calculation.
To measure your Churn Rate, you will need to know how many customers you had at the start and end of a given time period. Once you do, use the following formula to calculate churn:
(Total Starting Customers-Total Ending Customers)/Total Starting Customers
Once you have that number, multiply it by 100 to determine your Churn Rate.
For a B2B SaaS company, a monthly churn rate of 2% or less is considered good. Annualy, you should be strive to keep your Churn Rate below 7%.
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