TLDR Founders · STRATEGIES & TACTICS

HOW TO CALCULATE NET DOLLAR RETENTION

mostlymetrics.com5 min read

Summary from the TLDR Founders newsletter

Net Dollar Retention (NDR) is a measure of how much your existing customers expand in a given period, net of any churn or down-sell. It combines all your existing customer data and is arguably the best indicator of your business's health. You can impact NDR by selling more of the same product, introducing a new product, or reducing churn. Generally, anything over 110% is good, and anything over 130% is great.