Metrics
GDR (Gross Dollar Retention)
Quick definition
Revenue retained from existing customers WITHOUT counting expansion. It strictly measures churn and contraction.
GDR = (Starting MRR - Contraction - Churn) / Starting MRR. Unlike NDR, GDR can never exceed 100% (no expansion credit). Reveals true customer-base stickiness. Healthy SaaS targets 90%+ GDR. The gap between GDR and NDR reveals the company's expansion engine. A healthy SaaS with 92% GDR and 125% NDR has 33 points of expansion offsetting 8 points of churn.
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Insights, guides, and tools where GDR (Gross Dollar Retention) shows up.
Frequently asked questions
- What is GDR (Gross Dollar Retention)?
- GDR = (Starting MRR - Contraction - Churn) / Starting MRR. Unlike NDR, GDR can never exceed 100% (no expansion credit). Reveals true customer-base stickiness. Healthy SaaS targets 90%+ GDR. The gap between GDR and NDR reveals the company's expansion engine. A healthy SaaS with 92% GDR and 125% NDR has 33 points of expansion offsetting 8 points of churn.
- Why is GDR (Gross Dollar Retention) important for startups?
- GDR (Gross Dollar Retention) is a metrics concept that matters for startup founders because it shows up in fundraising readiness, financial decision-making, and operational discipline at the stage where mistakes are expensive to undo. Founders who understand it are better prepared for diligence, board meetings, and investor conversations.
- What category does GDR (Gross Dollar Retention) belong to?
- GDR (Gross Dollar Retention) is a Metrics term in the StartupCFO finance glossary, alongside other metrics concepts that founders, CFOs, and accountants use in startup operations and reporting.
- Where can I learn more about GDR (Gross Dollar Retention)?
- Beyond this definition, see the related metrics terms below, or explore StartupCFO's insights and tools that put GDR (Gross Dollar Retention) in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
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