ChurnCost.com
Updated April 2026

Net Revenue Retention Benchmarks 2026

Median SaaS NRR compressed from 117% in 2021 to 101% in 2026. Here is where you should be now - by ACV band, company size, and stage.

NRR Percentile Lookup - Where Do You Stand?

%

Your NRR

105%

Standing

Above median

Segment median

97%

25th pct: 88%
Median: 97%
75th pct: 108%
Top decile: 116%

NRR by ACV Band

ACV BandMedian NRRTop Quartile NRRMedian GRRNote
Enterprise (>$100K ACV)118%130%+94%Strong upsell motion critical
Mid-Market ($25K-$100K ACV)108%120%88%Expansion playbook needed
SMB ($5K-$25K ACV)97%110%85%Gross churn headwind
Low ACV (<$5K ACV)90%100%80%Volume model, thin margins on retention

Sources: Bessemer Venture Partners State of the Cloud 2026, SaaS Capital Index, Benchmarkit 2026.

NRR by Company Size (ARR)

$100M+ ARR

115%

Top quartile: 125%+

$10M-$100M ARR

108%

Top quartile: 118%

$1M-$10M ARR

98%

Top quartile: 110%

<$1M ARR

90%

Top quartile: 100%

NRR Trend 2021-2026: The Compression Story

YearMedian NRRTop Quartile NRR
2021117%130%
2022113%126%
2023108%120%
2024104%116%
2025102%113%
2026 (current)101%111%

Why NRR Compressed Post-2022

Seat reductions

Mass layoffs in tech (2022-2023) reduced seat counts directly. Companies with seat-based pricing saw immediate NRR compression as customers downsized their active licenses.

Budget scrutiny and vendor rationalization

CFOs mandated SaaS spend reviews. Expansion investments that would have been approved in 2021 are now challenged. Buyers are consolidating to fewer, stickier tools rather than expanding to more.

PLG saturation at lower ACVs

Product-led growth models created a ceiling effect: users free-tier forever or expand to a capped plan. The natural expansion curve flattened as PLG matured in the market.

Usage-based pricing normalization

While usage-based pricing unlocks expansion, it also creates volatility when customers reduce usage. Companies that shifted to pure usage models saw NRR compress when customers optimized usage.

Frequently Asked Questions

What is net revenue retention (NRR)?+
NRR measures the percentage of revenue retained from existing customers over a period, including expansion from upsells and cross-sells. An NRR of 110% means your existing customer base grew by 10% even before adding new customers.
What is the median NRR for SaaS in 2026?+
Median SaaS NRR compressed from 117% in 2021 to 101% in 2026. Top quartile companies still achieve 111%+. By ACV: enterprise median is 118%, mid-market 108%, SMB 97%.
What is the difference between NRR and GRR?+
GRR measures retention before expansion - only churn and downgrades, capped at 100%. NRR includes expansion revenue from upsells and seat additions. When NRR exceeds 100%, expansion outpaces churn.
What is a good NRR for a SaaS company?+
In 2026: 130%+ is elite (top decile). 110-120% is top quartile. 100-110% is healthy. Under 100% means churn exceeds expansion. By ACV: enterprise should target 115-125%, mid-market 105-115%, SMB 95-105%.
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