Net Dollar Retention

Measures the percentage of revenue retained from existing customers, considering churn and expansion.

Net Dollar Retention

Measures the percentage of revenue retained from existing customers, considering churn and expansion.

Net Dollar Retention

Measures the percentage of revenue retained from existing customers, considering churn and expansion.

Formula

NDR = (Revenue End of Period - Revenue Lost + Revenue Gained from Upgrades) / Revenue Start of Period * 100

Know your metric

Importance of

NDR

  1. Overall Revenue Health

Reflects overall health of revenue from existing customers.


  1. Expansion Success

Indicates success of upselling and cross-selling.


  1. Long-term Customer Value

Helps understand the long-term value of customer relationships.

Drawbacks of

NDR

  1. Complex to Track

Difficult to calculate accurately due to various revenue adjustments.


  1. May Obscure Churn

High expansion revenue can mask significant churn.


  1. Not Indicative of Customer Acquisition

Doesn’t reflect new customer revenue.

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