# Net Dollar Retention (NDR)

> Net Dollar Retention (NDR) measures the percentage of recurring revenue retained from existing customers over a period, including expansion revenue and subtracting churn and contraction.

- **URL**: https://dodopayments.com/glossary/net-dollar-retention

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## What is Net Dollar Retention (NDR)?

Net Dollar Retention (NDR) measures the percentage of recurring revenue retained from existing customers over a period, including expansion revenue and subtracting churn and contraction. It is one of the most important metrics for evaluating the health of a SaaS business.

### Why It Matters

- An NDR over 100% indicates that the company is growing its revenue from existing customers even without new acquisitions.

- It reflects the product's ability to provide increasing value and maintain high customer satisfaction.

- High NDR is strongly correlated with higher company valuations in the public and private markets.

## Learn More

- [Metrics to reduce SaaS churn](https://dodopayments.com/blogs/reduce-churn-metrics-saas)
- [Reducing involuntary churn from failed payments](https://dodopayments.com/blogs/involuntary-churn-failed-payments)
- [How subscription fatigue impacts retention](https://dodopayments.com/blogs/subscription-fatigue)