How to Use Net Dollar Retention Calculator
The Net Dollar Retention Calculator takes your beginning monthly recurring revenue and adjusts it for expansion (upsells and cross-sells), contraction (downgrades), and churn (cancellations). The resulting NDR percentage tells you if your existing customer base is a net revenue grower or a net revenue drain.
What It Does
Use the calculator with intent
The Net Dollar Retention Calculator takes your beginning monthly recurring revenue and adjusts it for expansion (upsells and cross-sells), contraction (downgrades), and churn (cancellations). The resulting NDR percentage tells you if your existing customer base is a net revenue grower or a net revenue drain.
SaaS operators, customer success leaders, and investors who want to understand the health of an existing customer base independent of new sales. NDR above 100% means the business can grow even without acquiring new customers.
Interpreting Results
NDR above 100% is the key threshold: it means expansion outpaces losses. The verdict text provides context for your specific score, from critical (below 80%) to exceptional (above 130%).
Input Steps
Field by field
- 1
Beginning MRR
Enter your monthly recurring revenue at the start of the period from existing customers only. Do not include new customers acquired during the period.
- 2
Expansion MRR
Enter the additional MRR gained from existing customers through upsells, cross-sells, and plan upgrades during the period.
- 3
Contraction and Churned MRR
Enter contraction MRR (downgrades) and churned MRR (cancellations) separately. Keeping them separate helps you diagnose whether you have a downgrade problem, a cancellation problem, or both.
- 4
Results
Review NDR percentage, ending MRR, and the net change. An NDR above 100% means your existing base is expanding. Top SaaS companies target 110-130%.
Common Scenarios
Use realistic starting points
Healthy SaaS with strong expansion
Beginning MRR
$100,000
Expansion MRR
$15,000
Contraction MRR
$3,000
Churned MRR
$5,000
NDR of 107% means the existing base grows 7% per period without any new sales. This compounds powerfully over time.
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FAQ
Questions people ask next
The short answers readers usually want after the first pass.
Sources & References
- Net Dollar Retention: The Most Important SaaS Metric — SaaStr
- Net Revenue Retention — Investopedia
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