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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