Net Dollar Retention

Definitions

1. The percentage of recurring revenue retained from existing customers over a period, accounting for expansion (upsells), contraction (downgrades), and churn. NDR > 100% means revenue from existing customers is growing (expansion exceeds churn). Top SaaS companies target 120%+ NDR. The most important SaaS efficiency metric.

   In plain English: Whether your existing customers are spending more or less over time — above 100% means you're growing without new customers.

   Example: "Our NDR is 115% — we lost 5% to churn but gained 20% from upsells. Existing customers are growing revenue without any new sales."

Related Terms

• ARR
• Churn Rate
• Unit Economics
• Series A
• North Star Metric
• Pricing Page
• PLG
• Monthly Recurring Revenue
• Annual Recurring Revenue
• ARR Growth Rate
• Bottom-Up SaaS
• T2D3
• Trial Conversion
• Viral Coefficient