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Metrics

NDR (Net Dollar Retention)

Quick definition

Year-over-year revenue retained from existing customers, including expansion, contraction, and churn. >100% means existing customers grew.

NDR (Net Dollar Retention) = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR, measured over a fixed period (usually 12 months). NDR > 100% means existing customers more than offset churn through upsells/expansion, the holy grail for SaaS. Best-in-class SaaS hits 130%+ NDR. 110% is healthy. <90% signals real problems. The single most-watched SaaS metric by growth-stage investors.

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Insights, guides, and tools where NDR (Net Dollar Retention) shows up.

Frequently asked questions

What is NDR (Net Dollar Retention)?
NDR (Net Dollar Retention) = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR, measured over a fixed period (usually 12 months). NDR > 100% means existing customers more than offset churn through upsells/expansion, the holy grail for SaaS. Best-in-class SaaS hits 130%+ NDR. 110% is healthy. <90% signals real problems. The single most-watched SaaS metric by growth-stage investors.
Why is NDR (Net Dollar Retention) important for startups?
NDR (Net 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 NDR (Net Dollar Retention) belong to?
NDR (Net 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 NDR (Net Dollar Retention)?
Beyond this definition, see the related metrics terms below, or explore StartupCFO's insights and tools that put NDR (Net Dollar Retention) in context. For specific situations, talk to a fractional CFO who can walk through your numbers.

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