Net Dollar Retention (NDR) Calculator 2026
Calculate Net Dollar Retention (NDR) — also called Net Revenue Retention (NRR) — from expansion, contraction and churn across your customer base. NDR above 100% means your installed base grows even without new customer acquisition, and is one of the strongest signals of SaaS business health.
Key Inputs
- Starting MRR from existing customers at period start (£)
- Expansion MRR from upsells, cross-sells and seat growth (£)
- Contraction MRR from downgrades (£)
- Churned MRR from cancellations (£)
What You'll Get
- Net Dollar Retention % = (Starting + Expansion − Contraction − Churn) ÷ Starting × 100
- Gross Dollar Retention % = (Starting − Contraction − Churn) ÷ Starting × 100
- Net MRR movement from existing customer base
- Benchmark rating against SaaS cohort medians
Important Notes & Benchmarks
NDR formula: (Starting MRR + Expansion MRR − Contraction MRR − Churned MRR) ÷ Starting MRR × 100. Gross Dollar Retention excludes expansion (revenue retained before upsell). SaaS benchmarks 2025: median public SaaS NDR is ~110–120%; best-in-class (Snowflake, Datadog) exceeds 130%; below 90% NDR is a red flag. NDR is calculated on the existing customer cohort only — new logos are excluded from both numerator and denominator.
Frequently Asked Questions
What is a good NDR for a SaaS business?
NDR above 100% is the key threshold — it means the existing customer base grows revenue without new acquisition. Median public SaaS NDR is 110–120%. Best-in-class exceeds 130% (Snowflake peaked at 158%). Below 100% NDR means your installed base is shrinking, requiring constant new customer acquisition just to maintain flat revenue. Below 90% is a significant concern that most VCs will flag in diligence.
What is the difference between NDR and GDR?
Gross Dollar Retention (GDR) measures revenue retained before expansion — it captures only contraction and churn, and can never exceed 100%. Net Dollar Retention (NDR) includes expansion revenue, so it can exceed 100%. GDR shows how well you retain customers in absolute terms; NDR shows how effectively you grow revenue within the existing base. Both metrics matter: high NDR on top of low GDR often means a few large customers are masking high churn among smaller accounts.
How can a SaaS company improve NDR?
Key levers to improve NDR: (1) reduce churn through better onboarding, customer success coverage and product improvements; (2) build expansion paths — seat-based pricing, usage-based tiers, add-on modules; (3) implement proactive health scoring to identify at-risk accounts before they churn; (4) align expansion revenue incentives within the customer success team. Companies with usage-based pricing (like AWS and Snowflake) often achieve the highest NDR because expansion happens naturally as customers grow.
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