Net dollar retention vs net revenue retention
Net dollar retention and net revenue retention cause endless confusion, but there is nothing to distinguish: they are identical. Different companies and investors simply prefer different names.
Both are computed the same way and interpreted the same way. What matters is consistency within your own reporting, not which of the two labels you use.
Short answer
Net dollar retention (NDR) and net revenue retention (NRR) are two names for the same metric. Both measure the change in recurring revenue from your existing customers over a period, including expansion and excluding new customers. Above 100 percent means the base grows on its own. The terms are fully interchangeable.
Key takeaways
- NDR and NRR are the same metric, different names.
- Both measure recurring revenue change in the existing base.
- Both include expansion and exclude new customers.
- Above 100 percent means the base compounds on its own.
Why two names exist
The metric grew popular across finance and SaaS communities that adopted different terminology. Investors often say net dollar retention; product and RevOps teams often say net revenue retention. Both refer to starting revenue plus expansion minus contraction and churn, over starting revenue.
Because they are identical, mixing the terms is harmless as long as the calculation is consistent. Pick one label for your own reporting to avoid confusing your audience.
How Ardovo handles it
Ardovo computes the metric once and labels it clearly, so NDR and NRR never appear to conflict in your reporting. Rook explains the drivers, expansion versus churn, regardless of which name your audience prefers.
Frequently asked questions
Is net dollar retention the same as net revenue retention?
Yes, they are the same metric under two names. Both measure the change in recurring revenue from existing customers, including expansion and excluding new customers. The terms are fully interchangeable.
Why are there two names for the same metric?
Different communities adopted different terminology. Investors often say net dollar retention, while product and RevOps teams say net revenue retention. The calculation and interpretation are identical, so the choice of label is just convention.
What is a good NDR or NRR?
Above 100 percent is healthy, meaning the existing base grows without new sales. Best-in-class B2B SaaS reaches 120 percent or more. Enterprise typically runs higher than SMB because accounts expand more.