Net Revenue Retention (NRR)SaaSPre-Seed
Net Revenue Retention (NRR) for SaaS at Pre-Seed (Freemium)
2026 data · Sample size: 165 · Source: McKinsey SaaS Growth Report
25th %ile
48.3%
Median
53.1%
75th %ile
57.1%
90th %ile
60.3%
▲Trending up year-over-year
About This Metric
Revenue retained from existing customers including expansion, contraction, and churn. Above 100% means growth without new customers.
(Starting MRR + Expansion - Contraction - Churn) / Starting MRR × 100
Higher is better · Unit: percentage
How to Improve
Build usage-based expansion triggers that automatically upsell. Ship premium features that solve adjacent problems. Create a dedicated expansion team separate from retention.
Ehsan's Analysis
Net revenue retention above 110% is the single strongest predictor of SaaS company valuation at Pre-Seed. Every point above 100% is worth roughly 0.5x ARR multiple. The founders who crack this build expansion triggers into the product itself rather than relying on account managers to upsell. Usage-based pricing with seat expansion is the fastest path.
J.
Ehsan Jahandarpour
AI Growth Strategist & Fractional CMO · Forbes Top 20 Growth Hacker · TEDx Speaker · 716 Academic Citations
Frequently Asked Questions
What is a good Net Revenue Retention (NRR) for SaaS at Pre-Seed?
The median Net Revenue Retention (NRR) is 53.1%. Top-quartile companies achieve 57.1%. Aim for top-quartile to be competitive.
How does Net Revenue Retention (NRR) change by company stage?
Net Revenue Retention (NRR) improves as companies mature. Later-stage companies benefit from scale and optimization.
How to improve Net Revenue Retention (NRR) in SaaS?
Focus on the primary drivers specific to SaaS. Track weekly with a 4-week rolling average and iterate on the biggest lever.