How do I calculate NDR (Net Dollar Retention)?

Use the formula(s) on this page. Keep inputs consistent by period and basis.

What are good benchmarks?

Benchmarks vary by model and stage. See Benchmarks on this page for ranges.

Inconsistent definitions/time windows; wrong basis (revenue vs gross profit).

Pitchkit

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GLOSSARY

NDR (Net Dollar Retention)

Revenue expansion minus revenue lost from churn/downgrades over a period.

Why it matters

Shows if existing customers expand enough to offset losses. > 100% implies net expansion.

Benchmarks

Early B2B 100–110%; Mid-stage 110–120%; Late 120–130%+. Segment by ICP/plan.

Worked example

Start $100k; Expansion $15k; Contraction $3k; Churn $5k → ((100+15−3−5)/100)=107%.

Common pitfalls

Using bookings instead of MRR; not excluding one-offs; ignoring seasonality.

Back to Glossary

GLOSSARY

NDR (Net Dollar Retention)

Revenue expansion minus revenue lost from churn/downgrades over a period.

Why it matters

Shows if existing customers expand enough to offset losses. > 100% implies net expansion.

Benchmarks

Early B2B 100–110%; Mid-stage 110–120%; Late 120–130%+. Segment by ICP/plan.

Worked example

Start $100k; Expansion $15k; Contraction $3k; Churn $5k → ((100+15−3−5)/100)=107%.

Common pitfalls

Using bookings instead of MRR; not excluding one-offs; ignoring seasonality.

NDR (Net Dollar Retention)

Why it matters

Benchmarks

Worked example

Common pitfalls

NDR (Net Dollar Retention)

Why it matters

Benchmarks

Worked example

Common pitfalls

How to show in your deck

Formulas

FAQs

Related terms

Why it matters

Benchmarks

Worked example

Common pitfalls

Why it matters

Benchmarks

Worked example

Common pitfalls

How to show in your deck

Formulas

FAQs

How do I calculate NDR?

What are good benchmarks?

Common pitfalls?

Related terms