Sales Forecasting

Gross Retention (GRR)

2026-05-31 7 min read

Gross Retention (also Gross Revenue Retention, GRR) measures the percentage of recurring revenue retained from existing customers excluding any expansion. Formula: (Starting MRR − Churned MRR − Contraction MRR) / Starting MRR. GRR cannot exceed 100%. Best-in-class B2B SaaS: ≥95%. Below 85% typically indicates product-market-fit or customer-success issues. GRR is the cleanest measure of churn-only economics, separate from upsell motion.

TL;DR

<strong>Gross Retention</strong> (also Gross Revenue Retention, GRR) measures the percentage of recurring revenue retained from existing customers excluding any expansion. Formula: (Starting MRR − Churned MRR − Contraction MRR) / Starting MRR. GRR cannot exceed 100%. Best-in-class B2B SaaS: ≥95%. Below 85% typically indicates product-market-fit or customer-success issues. GRR is the cleanest measure of churn-only economics, separate from upsell motion.

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Sources

Definitions and benchmarks reference primary sources from the Sales Forecasting pillar. Verified at publication.

  1. 1 State of Sales Forecasting — Gartner, 2025. View source .
  2. 2 AI Revenue Forecasting Accuracy Study — Forrester, 2025. View source .
  3. 3 Pipeline Coverage Benchmarks B2B SaaS — Pavilion, 2025. View source .

Fairview cites primary sources only — government data, academic research, industry benchmarks from named publishers, and official vendor documentation. See our editorial standards.