Gross Retention

Gross Retention measures the percentage of existing recurring revenue retained from current customers over a defined period, excluding expansion or upsell revenue but including downgrades and churn.

Gross Retention Formula: (Recurring Revenue at End of Period – Churned Revenue) / Recurring Revenue at Start of Period

A high gross retention rate indicates strong customer satisfaction, product stickiness, and predictable revenue streams — particularly important for SaaS and subscription businesses. Industry benchmarks often place healthy gross retention above 85% for enterprise SaaS companies.