How to Calculate Net Dollar Retention | Finance for SaaS

How to Calculate Net Dollar Retention | Finance for SaaS

You'll learn about the importance of NDR, its key components, its formula, and how to measure it across customer cohorts. ✅ Net Dollar Retention Calculation Template Download (free): https://mailchi.mp/ericandrewsstartup... 🚀 If you want to master the finance skills & frameworks to successfully scale technology startups, secure your spot in my "Finance for Startups" program: https://www.ericandrewsstartups.com/f... (special offer available) ⚠️ Most founders are off by 2–4x on CAC payback. See your real number here (free): https://paybacklie.com/ Communities: 💼 Linkedin:   / eric-andrews-1624b656   💻 Newsletter: https://mailchi.mp/1cf66809482f/mcoa7... Related Startup Videos: 🚩 Playlist - Finance for SaaS Startups:    • Finance for SaaS Startups   🚩 7 Most Important SaaS Metrics:    • 7 Most Important SaaS Metrics | Finance fo...   🚩 SaaS Financial Model Tutorial:    • SaaS Financial Model Tutorial | Scaling a ...   ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ 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