How to calculate net revenue retention (NRR) using Lago analytics

Lago does not display net revenue retention natively. There is no NRR figure in the analytics dashboard, but you can calculate it from the MRR breakdown Lago already tracks. The formula is:

NRR = [(Starting MRR + Expansion MRR − Churned MRR − Contraction MRR) / Starting MRR] × 100

Where to find the MRR components

The starting, expansion, contraction, and churn figures come from the MRR tab of the Lago analytics dashboard, where the MRR flow for a period is broken out into those components. The MRR dashboard is a premium feature, so you need a premium license to see this breakdown.

The REST analytics endpoint for MRR returns only a single total MRR figure per month. It does not return the starting, expansion, contraction, or churn split, so it cannot be used on its own to calculate NRR. For the component breakdown you need the dashboard.

If your MRR shows as zero

Lago's MRR counts subscription fees only, meaning fixed recurring charges. Usage-based metrics, whether recurring or metered, are not included. If your plans carry no subscription fee and you bill entirely on usage, MRR will read as zero and the MRR breakdown will not be a meaningful basis for NRR.

In that case the MRR analytics is the wrong starting point. The closest alternatives are the gross revenue endpoint, which returns total revenue across all fee types by month, and the invoiced usage endpoint, which returns usage revenue broken down by billable metric. Neither one gives the per-customer historical breakdown of expansion, contraction, and churn that NRR by cohort requires, so deriving a true NRR for a usage-only setup means assembling that history yourself from invoice or fee data.

This article reflects guidance drawn from customer case resolutions. It is not officially supported documentation and may not apply to all situations.