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Net Dollar Retention Calculator

Enter your starting MRR and the period's expansion, contraction and churn.

How it is calculated

The tool follows only the customers you already had at the start of the period: ending = starting + expansion − contraction − churned and NDR = ending ÷ starting × 100. All four fields are amounts of recurring revenue in the same currency and for the same period (for example MRR over one quarter). Expansion is extra revenue from upgrades, added seats and price rises; contraction is revenue lost from downgrades while the customer stays; churned is the revenue of customers who left. The net change is ending − starting, and NDR is shown with one decimal. Starting revenue must be above zero. Revenue from customers who joined during the period must not be included.

Worked example

A SaaS business starts the quarter with 50,000 of recurring revenue from existing customers. Upgrades add 6,500, downgrades remove 1,800 and cancellations remove 3,200. Ending revenue is 50,000 + 6,500 − 1,800 − 3,200 = $51,500.00. The net change is +$1,500.00, and NDR is 51,500 ÷ 50,000 × 100 = 103.0%. Existing customers therefore grew in value by 3% even though some left. Without the expansion, the same base would have retained only 90%.

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Common mistakes

  • Including revenue from customers who signed during the period: that is new business, and it pushes NDR up without telling you anything about the existing base.
  • Entering contraction or churn as negative numbers: they are subtracted by the tool, so a negative value is added back and inflates the result.
  • Mixing periods, such as annual expansion against monthly starting revenue: all four amounts must cover the same starting group and the same period.
  • Reading NDR as gross retention: NDR includes expansion, so it can exceed 100% while many customers are cancelling, and a high NDR can hide heavy churn.

Sources

About this calculator

Net dollar retention (NDR), also called net revenue retention, measures how much recurring revenue a SaaS company keeps and grows from its existing customer base alone, excluding any revenue from new customers. It's calculated as (starting MRR + expansion − contraction − churn) ÷ starting MRR, expressed as a percentage.

An NDR above 100% means upsells and expansions are outpacing downgrades and cancellations — customers are growing more valuable over time even before a single new logo is signed. SaaS founders, CFOs, and investors treat NDR as one of the clearest signals of product-market fit and durability of revenue, since it strips out the noise of new customer acquisition and shows whether the core business is compounding or leaking.

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  • Editorial team

    NDR looks only at customers you already had, so it can hide a leaky bucket: a high expansion figure from a few big accounts can offset many small cancellations. Before trusting one blended number, run the tool twice, once for your largest accounts and once for the rest, using the same period for both. Compare the two results and see whether growth is broad or concentrated. How do you segment your customers when you track retention?

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