SaaS Metrics

NDR (Net Dollar Retention)

NDR is another name for NRR in dollar terms. It measures how existing revenue changes including expansion.

Written by MetricKit EditorialReviewed by MetricKit Editorial ReviewUpdated 2026-01-23
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Definition

NDR is another name for NRR in dollar terms. It measures how existing revenue changes including expansion.

Formula

NDR = (starting revenue + expansion - contraction - churn) / starting revenue

Example

If starting revenue is $100k, expansion is $20k, contraction is $5k, and churn is $10k, NDR = ($100k+$20k-$5k-$10k)/$100k = 105%.

How to use it

  • Track NDR by cohort and segment to see where expansion is durable.
  • Pair NDR with GRR to understand how much expansion masks churn.
  • Use NDR trend to forecast net retention contribution to growth.

Common mistakes

  • Reporting NDR without separating expansion from price increases.
  • Using blended NDR and missing weak cohorts or segments.

Measured as

NDR = (starting revenue + expansion - contraction - churn) / starting revenue

Misused when

  • Reporting NDR without separating expansion from price increases.
  • Using blended NDR and missing weak cohorts or segments.

Operator takeaway

  • Track NDR by cohort and segment to see where expansion is durable.
  • Pair NDR with GRR to understand how much expansion masks churn.
  • Use NDR trend to forecast net retention contribution to growth.
  • Keep NDR (Net Dollar Retention) consistent by cohort, segment, and period before you use it as a decision signal in planning or reporting.
  • Interpret the metric alongside retention, margin, or payback so one ratio does not hide the real operating trade-off.

Next decision

  • Quantify the impact with NRR Calculator if you need to turn the definition into an operating assumption.
  • Read NRR (Net Revenue Retention): definition, formula, how to calculate if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.

Where to use this on MetricKit

Calculators

  • NRR Calculator: Calculate Net Revenue Retention (NRR) from starting MRR and revenue movements.
  • NRR vs GRR Calculator: Calculate NRR and GRR together from the same starting MRR and expansion/contraction/churn inputs.

Guides