Formula
Cohort NRR, month n = MRR in month n of customers first live in month c
÷ their MRR in month c
(all months at one set of rates)Worked example
Illustrative figures. Net revenue retention for three monthly cohorts. Later months are not yet available for newer cohorts.
| Cohort | Starting MRR | Month 1 | Month 2 | Month 3 |
|---|---|---|---|---|
| January | 20,000 | 100% | 108% | 95% |
| February | 12,000 | 105% | 105% | |
| March | 8,000 | 90% |
Reading the table
Read along a row to see how one cohort develops. Read down a column to compare cohorts at the same age. Improving retention appears as later cohorts sitting above earlier ones in the same column.
Revenue and logo cohorts
A revenue cohort includes expansion and can exceed 100%; a logo cohort cannot. Small cohorts are volatile: one customer moves a cohort of three by a third. Show customer counts and starting MRR beside the percentages.
Constant currency
Translate every month of a cohort at the same rates. Otherwise currency movements appear as retention.
How Revnewed calculates it
Cohort tables group customers by their first month with MRR and show net revenue and logo retention for every later month, at one set of exchange rates.
Each cohort shows its customer count and starting MRR.
Common misstatements
- Cohorts by signature date
- Grouping by signature mixes customers who went live months apart.
- Mixed exchange rates
- A cohort translated at each month’s own rate reports currency as retention.
- Percentages without counts
- A 50% cell may be one customer of two.