The NRR Formula
NRR = (Beginning ARR + Expansion - Churn) / Beginning ARR
Example: Start with $1M. Add $300K expansion. Lose $100K to churn. NRR = ($1M + $300K - $100K) / $1M = 120%
Every 1% increase in NRR compounds exponentially. Move from 100% to 120% and your revenue growth accelerates 2x.