All terms > Net Dollar Retention (NDR)
Net Dollar Retention (NDR)
A calculation of the total recurring revenue generated from existing customers. This is expressed as the net of increases in revenue from account expansion, as well as decreases in revenue from downgrades and cancels.
The most successful companies achieve greater than 100% NDR (in many cases well above). When NDR exceeds 100%, it means that a company is generating more revenue from existing customers over time. This massively increases growth rates because no new business revenue is offset by revenue lost due to churn. See Dave Kellogg's in-depth discussion and benchmarks on NDR as a core SaaS metric for more information.
Net dollar retention (NDR) is a synonym for net revenue retention (NRR), but the industry is trending towards using NDR as the preferred term.
