Net Dollar Retention Rate Calculation

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Net Dollar Retention (NDR) Calculator .ndr-calculator-wrapper { font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; max-width: 800px; margin: 0 auto; background: #fff; padding: 20px; } .ndr-calc-box { background: #f8f9fa; border: 1px solid #e9ecef; border-radius: 8px; padding: 25px; box-shadow: 0 4px 6px rgba(0,0,0,0.05); margin-bottom: 30px; } .ndr-calc-title { text-align: center; color: #2c3e50; margin-bottom: 20px; font-size: 24px; font-weight: 700; } .ndr-input-group { margin-bottom: 15px; } .ndr-input-group label { display: block; margin-bottom: 5px; font-weight: 600; color: #495057; } .ndr-input-group input { width: 100%; padding: 10px; border: 1px solid #ced4da; border-radius: 4px; font-size: 16px; box-sizing: border-box; } .ndr-input-group input:focus { border-color: #4dabf7; outline: none; box-shadow: 0 0 0 3px rgba(77, 171, 247, 0.25); } .ndr-row { display: flex; gap: 20px; flex-wrap: wrap; } .ndr-col { flex: 1; min-width: 200px; } .ndr-btn { width: 100%; background-color: #228be6; color: white; border: none; padding: 12px; font-size: 18px; font-weight: bold; border-radius: 4px; cursor: pointer; transition: background-color 0.2s; margin-top: 10px; } .ndr-btn:hover { background-color: #1c7ed6; } .ndr-results { margin-top: 25px; padding-top: 20px; border-top: 2px solid #e9ecef; display: none; } .ndr-result-card { background: white; padding: 15px; border-radius: 6px; border-left: 5px solid #228be6; margin-bottom: 10px; box-shadow: 0 2px 4px rgba(0,0,0,0.05); } .ndr-result-label { font-size: 14px; color: #868e96; text-transform: uppercase; letter-spacing: 0.5px; } .ndr-result-value { font-size: 28px; font-weight: 800; color: #212529; margin-top: 5px; } .ndr-highlight-positive { color: #2f9e44; } .ndr-highlight-warning { color: #f59f00; } .ndr-highlight-negative { color: #e03131; } .ndr-content { line-height: 1.6; color: #333; } .ndr-content h2 { color: #2c3e50; margin-top: 30px; font-size: 22px; } .ndr-content h3 { color: #34495e; font-size: 18px; } .ndr-content ul { padding-left: 20px; } .ndr-content li { margin-bottom: 8px; }
Net Dollar Retention Calculator
The recurring revenue at the beginning of the period.
Upsells and cross-sells.
Revenue lost from plan reductions.
Revenue lost from cancellations.
Net Dollar Retention (NDR)
–%
Ending Revenue
$0.00
Net Revenue Change
$0.00
Analysis

About Net Dollar Retention (NDR)

Net Dollar Retention (NDR), sometimes referred to as Net Revenue Retention (NRR), is one of the most critical metrics for SaaS (Software as a Service) and subscription-based businesses. It measures the percentage of recurring revenue retained from existing customers over a specific period, accounting for upgrades (expansion), downgrades (contraction), and cancellations (churn).

How is NDR Calculated?

The Net Dollar Retention formula provides a snapshot of how well your business retains and grows its existing customer base. The calculation is as follows:

NDR = ((Starting MRR + Expansion – Downgrades – Churn) / Starting MRR) × 100

Where:

  • Starting MRR: Monthly Recurring Revenue at the beginning of the period.
  • Expansion MRR: Additional revenue from existing customers (upsells, cross-sells).
  • Downgrade MRR: Lost revenue from customers moving to lower tiers.
  • Churn MRR: Lost revenue from customers cancelling entirely.

Interpreting Your NDR Score

Your NDR percentage tells a powerful story about your business health:

  • > 120%: Exceptional. The company is growing efficiently purely through its existing customer base. This is typical for top-tier IPO-ready SaaS companies.
  • 100% – 120%: Healthy. Your expansion revenue is outpacing your churn and downgrades.
  • < 100%: Warning. Churn and downgrades are shrinking your business faster than you can expand existing accounts. You are reliant on new customer acquisition to maintain revenue levels.

Difference Between NDR and GRR

While NDR includes expansion revenue, Gross Retention Rate (GRR) does not. GRR only looks at retained revenue relative to the starting revenue, excluding upsells. GRR can never exceed 100%, whereas NDR can (and should) exceed 100% for high-growth companies.

Why NDR Matters for Valuation

Investors scrutinize NDR because it indicates the "stickiness" of the product and the efficiency of growth. A high NDR implies that the Customer Lifetime Value (LTV) is increasing, and the company does not need to spend as much on Customer Acquisition Costs (CAC) to grow.

function calculateNDR() { // 1. Get Input Values var startRev = document.getElementById("start_revenue").value; var expansion = document.getElementById("expansion_revenue").value; var downgrades = document.getElementById("downgrade_revenue").value; var churn = document.getElementById("churn_revenue").value; // 2. Validate Inputs and Parse var startVal = parseFloat(startRev); var expansionVal = parseFloat(expansion) || 0; // Default to 0 if empty var downgradeVal = parseFloat(downgrades) || 0; // Default to 0 if empty var churnVal = parseFloat(churn) || 0; // Default to 0 if empty // Check if Starting Revenue is valid if (isNaN(startVal) || startVal = 0 ? "+" : "") + formatter.format(netChange); // Color coding for NDR ndrDisplay.className = "ndr-result-value"; // Reset class if (ndrValue >= 110) { ndrDisplay.classList.add("ndr-highlight-positive"); } else if (ndrValue >= 100) { ndrDisplay.style.color = "#228be6"; // Blue/Neutral } else if (ndrValue >= 90) { ndrDisplay.classList.add("ndr-highlight-warning"); } else { ndrDisplay.classList.add("ndr-highlight-negative"); } // Analysis Text var analysisText = ""; if (ndrValue > 120) { analysisText = "Excellent. Your business is growing rapidly from its existing customer base alone. This is a hallmark of best-in-class SaaS companies."; } else if (ndrValue >= 100) { analysisText = "Good. You are retaining revenue effectively. Your upsells are compensating for any churn or downgrades."; } else if (ndrValue >= 90) { analysisText = "Caution. Your business is slightly shrinking from the existing base. Focus on reducing churn or increasing upsell opportunities to cross the 100% threshold."; } else { analysisText = "Critical. Churn is significantly impacting your revenue. You are relying heavily on new sales to replace lost revenue, which is expensive and unsustainable."; } analysisDisplay.innerHTML = analysisText; // Show Results resultContainer.style.display = "block"; }

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