Net Dollar Retention Calculator
Use our Net Dollar Retention Calculator to understand how effectively your SaaS or subscription business expands revenue within your existing customer base. By analyzing upgrades, downgrades, and churn, the calculator reveals how strongly your customer revenue engine performs month over month or year over year.
Calculate Net Dollar Retention
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What is Net Dollar Retention?
Net Dollar Retention (NDR) measures the percentage of recurring revenue you retain from existing customers after factoring in expansions, contractions, and churn. It captures how much value your customer base generates without relying on new customer acquisition. The formula uses starting recurring revenue (MRR or ARR), expansion revenue (upsells, cross-sells, seat increases), contraction revenue (downgrades), and revenue churn (lost accounts).
A high NDR score signals strong product adoption, high customer satisfaction, and a scalable account expansion model. Modern SaaS benchmarks show that companies with NDR above 120% often achieve faster growth and stronger valuations because their existing customers generate compounding revenue. An NDR calculator transforms these variables into a clear retention percentage that reflects long-term customer value and monetization quality.
Why Net Dollar Retention Matters for SaaS?
NDR serves as a definitive indicator of product-market fit, retention efficiency, and customer expansion health. Unlike acquisition metrics, NDR focuses entirely on existing accounts, making it immune to short-term marketing volatility. Investors use NDR to evaluate whether a SaaS company grows through organic account expansion or relies heavily on costly acquisition. Leadership teams track NDR because it directly influences ARR growth, cohort profitability, and customer lifetime value.
When you calculate NDR consistently, you gain visibility into upgrade momentum, contraction pressure, churn risk, and the overall durability of your revenue model. An NDR score that rises over time confirms that your product delivers increasing value per customer and that your expansion pipeline remains strong. A declining NDR, however, signals issues in onboarding, product engagement, pricing, or customer success execution.
How to Use Our Net Dollar Retention Calculator?
Enter your starting MRR or ARR from existing customers.
Add your expansion revenue, including upgrades and add-ons.
Enter contraction revenue caused by downgrades.
Add churned revenue from lost customers.
The calculator returns your NDR percentage instantly.
Who Should Use a Net Dollar Retention Calculator?
This calculator supports SaaS founders, revenue leaders, FP&A teams, customer success managers, and growth strategists who rely on accurate retention metrics. Midsize and enterprise SaaS companies use NDR to benchmark cohort performance, while early-stage startups track NDR to validate customer stickiness. Any recurring revenue business that depends on expansions or renewals can use NDR to evaluate the strength of its customer relationships and the resilience of its revenue base.
Benefits of Using a Net Dollar Retention Calculator
An NDR calculator makes it simple to quantify expansion efficiency and customer retention health. It exposes how effectively existing accounts grow over time and whether your product ecosystem encourages higher spending. By viewing expansions, downgrades, and churn together, you gain a holistic understanding of your revenue durability.
NDR insights also guide pricing strategy, renewal planning, and customer success priorities. A consistently high NDR, especially above industry benchmarks, strengthens fundraising narratives, improves valuation outlook, and confirms that your business generates compounding revenue without dependency on new customer acquisition.
Frequently Asked Questions
How is Net Dollar Retention calculated?
NDR = (Starting Revenue + Expansion – Contraction – Churn) ÷ Starting Revenue × 100.
What is a strong NDR benchmark?
Top SaaS companies often exceed 120% NDR, while healthy growth-stage businesses fall between 100% and 120%.
Does NDR include new customers?
No. NDR measures retention and expansion exclusively from existing customers.
Why would NDR decline?
Increasing downgrades, higher churn, or limited expansion opportunities reduce NDR.
Can NDR help forecast revenue?
Yes. It indicates how much ARR your current customer base can generate without new sales.
Should I track NDR monthly or annually?
Monthly NDR provides early signals; annual NDR offers broader strategic context.
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