What Is NDR (Net Dollar Retention)?

Another name for Net Revenue Retention — measures dollar-based retention including expansion.

Another name for Net Revenue Retention — measures dollar-based retention including expansion.

Net Dollar Retention (NDR) is functionally identical to Net Revenue Retention (NRR). Both measure the percentage of revenue retained from existing customers including expansion, contraction, and churn.

The term NDR is more commonly used in investor communications and earnings reports, while NRR is often used in operational contexts. Both convey the same information.

A strong NDR (>110%) signals product-led expansion — your product becomes more valuable to customers over time, driving natural revenue growth from upsells and usage increases.

Formula

NDR = ((Starting MRR + Expansion - Contraction - Churn) ÷ Starting MRR) × 100

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