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Gross revenue retention

Also called: GRR

Gross revenue retention measures how much starting cohort revenue survives a period counting only losses: churn and downgrades, never expansion. It is capped at one hundred percent and exposes the leak that net retention can otherwise hide behind strong upsell.

How it is calculated

GRR = (Starting revenue - Contraction - Churn) / Starting revenue

Report GRR next to NRR. A wide gap means expansion is masking a base that is quietly draining.

Why it matters for ARPU

Fixing the leak is usually cheaper per point of ARPU than selling harder into it, and it makes every later expansion decision worth more.