Net Dollar Retention (SaaS) Calculator
Measure how well recurring revenue is retained after accounting for upgrades, downgrades, and churn within a given period.
Examples
- $100,000 starting MRR, $15,000 expansion, $5,000 contraction, $3,000 churn ⇒ 107%
- $50,000 starting MRR, $2,000 expansion, $4,000 contraction, $6,000 churn ⇒ 84%
FAQ
What does a value over 100% mean?
It means upgrades and expansions exceeded downgrades and churn, so recurring revenue grew from existing customers.
Should I include new customers?
No. Net dollar retention focuses only on revenue from the existing cohort at the period start.
Can contraction exceed the starting MRR?
If contractions and churn exceed starting MRR the metric will fall below 0%, signalling significant revenue loss.
Additional Information
- Net dollar retention above 100% indicates expansion revenue outweighs losses.
- Use consistent currencies and timeframes when comparing cohorts.
- Pair with churn and acquisition metrics for a full retention picture.