Retention · Updated June 2026
Net Revenue Retention Benchmarks
NRR by ARR band and customer segment. The single metric that determines whether your growth compounds or decays over time.
120%+
Best-in-class NRR (enterprise)
100–110%
Healthy NRR range (SMB)
<90%
Contraction — growth headwind
NRR by ARR band and customer segment
| ARR Band | Customer Segment | Median NRR | Top Quartile NRR | Bottom Quartile NRR | Rating |
|---|---|---|---|---|---|
| Under $1M | SMB | 88% | 102% | 72% | Below breakeven |
| Under $1M | Mixed | 92% | 108% | 76% | Near breakeven |
| $1M–$5M | SMB | 92% | 106% | 78% | Near breakeven |
| $1M–$5M | Mid-Market | 102% | 118% | 86% | Expanding |
| $5M–$20M | SMB | 95% | 108% | 80% | Stable |
| $5M–$20M | Mid-Market | 108% | 124% | 90% | Healthy |
| $5M–$20M | Enterprise | 115% | 132% | 96% | Strong |
| $20M–$50M | SMB | 98% | 112% | 84% | Near healthy |
| $20M–$50M | Mid-Market | 112% | 128% | 94% | Healthy |
| $20M–$50M | Enterprise | 122% | 140% | 104% | Best-in-class |
| $50M–$100M | Mid-Market | 114% | 130% | 96% | Healthy |
| $50M–$100M | Enterprise | 126% | 148% | 108% | Best-in-class |
| $100M+ | Enterprise | 130% | 155% | 110% | Best-in-class |
| $100M+ | Mixed | 118% | 138% | 100% | Strong |
Sources: OpenView SaaS Benchmarks 2024, Bessemer State of the Cloud 2024, SaaStr Annual Survey 2024. NRR = (Beginning ARR + Expansion − Churn − Contraction) / Beginning ARR, measured over trailing 12 months.
SMB vs. Enterprise NRR: why the gap is structural
SMB-focused companies face higher gross churn (15–25% annually) due to business closures, budget cuts, and lower switching costs. The best SMB companies offset this with strong upsell motion, pushing NRR to 105–115%. Enterprise companies with land-and-expand models routinely achieve 120–145% NRR because seat expansion, module adoption, and price escalators compound on a sticky installed base. A company at 130% NRR doubles revenue from its existing base every 3.5 years with zero new customer acquisition.Related benchmarks