Net Dollar Retention
Definition
Net Dollar Retention: Net dollar retention measures revenue from existing customers over time, accounting for expansion, contraction, and churn. Calculated as (starting MRR + expansion - contraction - churn) / starting MRR, NDR above 100% means growth from existing customers exceeds losses. Elite SaaS companies achieve 120%+ NDR, growing even without new customers.
Example Usage
“Our 115% NDR means we grow 15% annually from existing customers alone, even before adding new logos.”
Common Misconceptions
Related Terms
Expansion Revenue
Expansion revenue is additional revenue from existing customers through upsells, cross-sells, or increased usage. Strong expansion revenue can offset...
Churn Rate
Churn rate measures the percentage of customers or revenue lost over a period. Customer churn counts lost accounts, while revenue churn measures lost...
Customer Lifetime Value
Customer Lifetime Value (LTV) is the total revenue a business can expect from a single customer account over the entire relationship. LTV is calculate...
Net Revenue Retention
Net Revenue Retention measures the percentage of recurring revenue retained from existing customers over a period, including expansions, contractions,...
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