How to Calculate Net Dollar Retention | Finance for SaaS
Eric Andrews Eric Andrews
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 Published On Sep 15, 2023

You'll learn about the importance of NDR, its key components, its formula, and how to measure it across customer cohorts.

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In this video, we learn about the definition & formula for net dollar retention, the components that go into its calculation, industry benchmarks on what is strong/weak NDR, and how to measure it on the cohort level as well as company-wide.

Sections:
0:54 definition & importance of NDR (why investors love high NDR!)
2:22 NDR components - how contraction/expansion revenue and time periods factor into NDR
3:08 simple net dollar retention calculation
4:31 net dollar retention industry benchmarks
5:46 how to calculate NDR using cohort analysis
11:08 how to measure company-wide net dollar retention (with mixed cohorts)

If you have questions - leave a comment below and I'll try to help. Cheers!

#netdollarretention #NDR #SaaS #startups

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