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Rev Rec

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1 entry 4 related topics Updated May 12, 2026

What is the right way to compute true gross retention vs net retention when half your customers are on multi-year contracts with annual escalators?

gross-retentionnet-retentionsaas-metricsmulti-year-contractsrev-recMay 12

Quick take: Compute retention on the contracted ARR base eligible for renewal in the period (not on total active ARR), normalize annual escalators OUT of NRR to avoid double-counting "expansion" you contractually pre-sold, and report GRR an…

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Related topics in the library
Gross Retention (1)Net Retention (1)Saas Metrics (1)Multi Year Contracts (1)