SaaS Net Dollar Retention (NDR) Calculator

考虑 Net Dollar Retention (NDR) as a leaky bucket; a high NDR means you’re patching the leaks and filling it faster than water can escape.

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    Strategic Value of NDR

    NDR helps companies allocate resources for maximum ROI.

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    Revenue Stability

    Effective NDR ensures predictable income generation.

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    Growth Efficiency

    Strong NDR allows rapid growth without needing more customers.

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📈 结果

SaaS Net Dollar Retention (NDR)

0.00%
Net Dollar Retention (NDR) measures the percentage of recurring revenue retained from existing customers over time, including expansions, contractions, and churn. An NDR above 100% indicates growth from existing customers.

How to Calculate SaaS Net Dollar Retention (NDR)

To determine your SaaS NDR, please follow these steps:

  1. 确定您的起始月度经常性收入 (MRR)。 This is your total Monthly Recurring Revenue at the beginning of the period you’re analyzing. For example, a small SaaS company might start with $20,000 MRR, while a larger one could start with $500,000.
  2. 计算您的扩展月度经常性收入。 This is the additional MRR generated from existing customers through upgrades or add-ons during the period. A small SaaS might see a $2,000 increase, while a large one might see $50,000.
  3. 确定您的流失月度经常性收入. This is the MRR lost from customers who canceled their subscriptions during the period. A small business could churn $1,000, while a larger one may churn $20,000.
  4. Calculate your Downgrade MRR. This is the reduction in MRR from customers who downgraded their subscriptions during the period. For instance, a small company may lose $500 from downgrades, while a larger one could lose $5,000.
  5. Apply the formula. For example, if you have $20,000 starting MRR, $2,000 expansion, $1,000 churn, and $500 downgrade, the calculation would be ($20,000 + $2,000 – $1,000 – $500) / $20,000.
  6. Calculate the result. Using the previous example, the result would be $20,500 / $20,000 = 1.025. Then multiply by 100 to get the percentage: 1.025 * 100 = 102.5%.

注意： A healthy NDR is typically above 100%, indicating that your existing customers are generating more revenue over time. Make sure to use the same time period for all values.

SaaS Net Dollar Retention (NDR) = (Starting MRR + Expansion MRR – Churned MRR – Downgrade MRR) / Starting MRR

Understanding SaaS Net Dollar Retention (NDR)

Ioana Grigorescu

1 月 14, 2025

What is Net Dollar Retention (NDR)?

Taking into consideration cancellations, downgrades, and upgrades, SaaS Net Dollar Retention (NDR) calculates the proportion of recurring revenue kept from current clients. A thriving SaaS business is indicated by an NDR of 100%, which shows that revenue from existing clients is steady or increasing. On the other hand, an NDR below 100% indicates that you are losing money and that your customer base has to be better nurtured.

 

  • Increase revenue by taking advantage of expansion among current clients, which is a crucial sign of long-term viability.

     

  • Use transparent data on client happiness, upselling, and problem areas to inform strategic choices.

     

  • Evaluate the success of customer success initiatives and the general strength of accounts to gauge business performance.

Practical Examples of SaaS Net Dollar Retention

  • 示例 1: In 2020, a SaaS company started with $100,000 in annual recurring revenue. By 2021, they lost $10,000 due to cancellations but gained $20,000 in upsells. Thus, their Net Dollar Retention was ($100,000 – $10,000 + $20,000) / $100,000 = 110%.
  • Example 2: A software firm initially generating $500,000 managed to increase its revenue by $50,000 from existing customers through upselling, although $25,000 was lost to churn. Their NDR calculation would be ($500,000 – $25,000 + $50,000) / $500,000 = 105%.
  • 示例 3: Consider a company with $200,000 starting revenue. Despite experiencing $30,000 in churn, it partially offset these losses by acquiring $40,000 through upgrades. Therefore, the Net Dollar Retention stood at ($200,000 – $30,000 + $40,000) / $200,000 = 105%.
期间 起始月度经常性收入 (MRR) Upgrades Downgrades 客户流失 期末月度经常性收入 Net Dollar Retention 与上一期间的变化
第1个月 $500,000 $50,000 $10,000 $15,000 $525,000 105.0% 不适用
第2个月 $525,000 $60,000 $12,000 $13,000 $560,000 106.7% +1.7%
第3个月 $560,000 $70,000 $15,000 $10,000 $605,000 108.0% +1.3%

NDR = ($560,000 + $70,000 – $10,000 – $15,000) / $560,000 = 1.08

Different Ways to Calculate Net Dollar Retention (NDR)

  • Simple NDR Calculation: Divide the total revenue at the end of the period by the total revenue at the beginning of the same period, excluding any new sales. Useful for a quick overview of customer expansion and churn effects.
  • NDR Calculation Including Churn: Accounts for revenue lost due to customer churn, providing a detailed view on revenue changes and churn’s impact. Key for long-term planning.
  • NDR Calculation by Segments: Customers are divided into groups (e.g., by size, industry, plan type). Identifies successful segments to tailor business strategies effectively.
  • Adjusted NDR: Adjustments are made for contractual upgrades/downgrades and one-time fees to accurately reflect recurring revenue behavior.

How to Improve Your SaaS Net Dollar Retention

  • Improve Product and Service Quality: To lower churn and increase retention, continuously provide exceptional products or services that go above and beyond for customers.
  • Deliver Outstanding Customer Service: Make sure your support staff is helpful, informed, and quick to respond to any client concerns.
  • Remain accessible and visible: Keep the lines of communication open with your clients by providing frequent updates and being easily accessible across multiple platforms.
  • Educate Your Clients: Provide guides, seminars, and tutorials to help your clients get the most out of your goods.
  • Demonstrate Customer Appreciation: Frequently thank your customers with thank-you notes, customer spotlights, or incentive schemes.
  • Collect Customer Feedback: Distribute questionnaires to learn more about areas for improvement and customer happiness.
  • Take Initiative with Disengaged Customers: Get in touch with clients who have ceased using your product to find out why and to promote re-engagement.
  • Provide Retention Bonuses: To encourage clients to keep using your business, give them discounts, exclusive deals, or launch a loyalty program.
  • Review Your Value Proposition: If you’re having trouble lowering churn, take another look at what your clients value most and modify your products accordingly.

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