Gross Dollar Retention %
Growth
Usage
Industry:
SaaS
Short Definition
Gross Dollar Retention (GDR), or Gross Revenue Retention (GRR), measures the percentage of recurring revenue retained from an existing customer base over a period. It excludes expansion revenue, accounting only for starting recurring revenue minus losses from customer churn and contractions. GDR can never exceed 100%.
Short Definition
Gross Dollar Retention (GDR), or Gross Revenue Retention (GRR), measures the percentage of recurring revenue retained from an existing customer base over a period. It excludes expansion revenue, accounting only for starting recurring revenue minus losses from customer churn and contractions. GDR can never exceed 100%.
Short Definition
Gross Dollar Retention (GDR), or Gross Revenue Retention (GRR), measures the percentage of recurring revenue retained from an existing customer base over a period. It excludes expansion revenue, accounting only for starting recurring revenue minus losses from customer churn and contractions. GDR can never exceed 100%.
Why it matters for Investors
Exclusion of Expansion Revenue: This is the most critical principle of GDR. Any additional revenue from upsells, cross-sells, or add-ons from the customer cohort is completely ignored in the calculation. This is the key difference between GDR and NDR
Cohort-Based: The calculation is always based on a defined cohort of customers that existed at the start of the period. Revenue from any new customers acquired during the period is not included
Maximum Value is 100%: By definition, since expansion revenue is excluded, the numerator can never be greater than the starting ARR in the denominator. Therefore, GDR can never exceed 100%
Focus on Stability, Not Growth: GDR is a measure of revenue stability and customer loyalty to the core product. It does not measure the company's ability to grow revenue from its existing customers; that is the purpose of NDR
Why it matters for Investors
Exclusion of Expansion Revenue: This is the most critical principle of GDR. Any additional revenue from upsells, cross-sells, or add-ons from the customer cohort is completely ignored in the calculation. This is the key difference between GDR and NDR
Cohort-Based: The calculation is always based on a defined cohort of customers that existed at the start of the period. Revenue from any new customers acquired during the period is not included
Maximum Value is 100%: By definition, since expansion revenue is excluded, the numerator can never be greater than the starting ARR in the denominator. Therefore, GDR can never exceed 100%
Focus on Stability, Not Growth: GDR is a measure of revenue stability and customer loyalty to the core product. It does not measure the company's ability to grow revenue from its existing customers; that is the purpose of NDR
Why it matters for Investors
Exclusion of Expansion Revenue: This is the most critical principle of GDR. Any additional revenue from upsells, cross-sells, or add-ons from the customer cohort is completely ignored in the calculation. This is the key difference between GDR and NDR
Cohort-Based: The calculation is always based on a defined cohort of customers that existed at the start of the period. Revenue from any new customers acquired during the period is not included
Maximum Value is 100%: By definition, since expansion revenue is excluded, the numerator can never be greater than the starting ARR in the denominator. Therefore, GDR can never exceed 100%
Focus on Stability, Not Growth: GDR is a measure of revenue stability and customer loyalty to the core product. It does not measure the company's ability to grow revenue from its existing customers; that is the purpose of NDR
Formula
Here Churn ARR = Logo Churn ARR + Contraction ARR Starting ARR = ARR at Time 0 i.e start of the measuring period
Practical considerations:
Exclusion of Expansion Revenue: This is the most critical principle of GDR. Any additional revenue from upsells, cross-sells, or add-ons from the customer cohort is completely ignored in the calculation. This is the key difference between GDR and NDR
Cohort-Based: The calculation is always based on a defined cohort of customers that existed at the start of the period. Revenue from any new customers acquired during the period is not included
Maximum Value is 100%: By definition, since expansion revenue is excluded, the numerator can never be greater than the starting ARR in the denominator. Therefore, GDR can never exceed 100%
Focus on Stability, Not Growth: GDR is a measure of revenue stability and customer loyalty to the core product. It does not measure the company's ability to grow revenue from its existing customers; that is the purpose of NDR
Formula
Here Churn ARR = Logo Churn ARR + Contraction ARR Starting ARR = ARR at Time 0 i.e start of the measuring period
Practical considerations:
Exclusion of Expansion Revenue: This is the most critical principle of GDR. Any additional revenue from upsells, cross-sells, or add-ons from the customer cohort is completely ignored in the calculation. This is the key difference between GDR and NDR
Cohort-Based: The calculation is always based on a defined cohort of customers that existed at the start of the period. Revenue from any new customers acquired during the period is not included
Maximum Value is 100%: By definition, since expansion revenue is excluded, the numerator can never be greater than the starting ARR in the denominator. Therefore, GDR can never exceed 100%
Focus on Stability, Not Growth: GDR is a measure of revenue stability and customer loyalty to the core product. It does not measure the company's ability to grow revenue from its existing customers; that is the purpose of NDR
Formula
Here Churn ARR = Logo Churn ARR + Contraction ARR Starting ARR = ARR at Time 0 i.e start of the measuring period
Practical considerations:
Exclusion of Expansion Revenue: This is the most critical principle of GDR. Any additional revenue from upsells, cross-sells, or add-ons from the customer cohort is completely ignored in the calculation. This is the key difference between GDR and NDR
Cohort-Based: The calculation is always based on a defined cohort of customers that existed at the start of the period. Revenue from any new customers acquired during the period is not included
Maximum Value is 100%: By definition, since expansion revenue is excluded, the numerator can never be greater than the starting ARR in the denominator. Therefore, GDR can never exceed 100%
Focus on Stability, Not Growth: GDR is a measure of revenue stability and customer loyalty to the core product. It does not measure the company's ability to grow revenue from its existing customers; that is the purpose of NDR
Worked Example
Starting ARR (August 31): $2,619,000
Contract log (September):
Account | Event | Effective by Sep 30? | ARR @ Sep 30 | Δ ARR in Sep | Category | Notes |
|---|---|---|---|---|---|---|
A | Existing customer cancels $10k plan, eff. Oct 1 | No | $0 | $0 | Future Churn | Cancellation effective next month. Not included in September's ARR. |
B | Existing customer cancels $20k annual plan, eff. Sep 30 | Yes | $0 | -$20,000 | Logo Churn | Lost an existing customer. |
C | Existing customer downgrades plan (-$9k), eff. Sep 20 | Yes | -$9,000 | -$9,000 | Contraction | Plan downgrade from existing customer. |
D | Existing customer upgrades plan (+$12k), eff. Sep 15 | Yes | +$12,000 | +$12,000 | Expansion | Upsell. Ignored in GDR calculation. |
E | New logo, annual $25k, starts Sep 5 | Yes | $25,000 | +$25,000 | New | New customer. Excluded from GDR calculation. |
GDR calculation:
Starting ARR: $2,619,000
Expansion ARR: +$12,000 (D) - This is explicitly excluded from the GDR calculation.
Contraction ARR: -$9,000 (C)
Logo Churn ARR: -$20,000 (B)
Ending ARR from Cohort: $2,619,000 - $9,000 - $20,000 = $2,590,000
Gross Dollar Retention: ($2,590,000 / $2,619,000) * 100 = 98.9%
Notes:
The GDR calculation only considers negative revenue changes (Contraction and Logo Churn) from the existing customer base
Revenue from new customers (E) and future events (A) are excluded
Crucially, the positive Expansion ARR from customer (D) is completely ignored, providing a pure measure of revenue retention
Worked Example
Starting ARR (August 31): $2,619,000
Contract log (September):
Account | Event | Effective by Sep 30? | ARR @ Sep 30 | Δ ARR in Sep | Category | Notes |
|---|---|---|---|---|---|---|
A | Existing customer cancels $10k plan, eff. Oct 1 | No | $0 | $0 | Future Churn | Cancellation effective next month. Not included in September's ARR. |
B | Existing customer cancels $20k annual plan, eff. Sep 30 | Yes | $0 | -$20,000 | Logo Churn | Lost an existing customer. |
C | Existing customer downgrades plan (-$9k), eff. Sep 20 | Yes | -$9,000 | -$9,000 | Contraction | Plan downgrade from existing customer. |
D | Existing customer upgrades plan (+$12k), eff. Sep 15 | Yes | +$12,000 | +$12,000 | Expansion | Upsell. Ignored in GDR calculation. |
E | New logo, annual $25k, starts Sep 5 | Yes | $25,000 | +$25,000 | New | New customer. Excluded from GDR calculation. |
GDR calculation:
Starting ARR: $2,619,000
Expansion ARR: +$12,000 (D) - This is explicitly excluded from the GDR calculation.
Contraction ARR: -$9,000 (C)
Logo Churn ARR: -$20,000 (B)
Ending ARR from Cohort: $2,619,000 - $9,000 - $20,000 = $2,590,000
Gross Dollar Retention: ($2,590,000 / $2,619,000) * 100 = 98.9%
Notes:
The GDR calculation only considers negative revenue changes (Contraction and Logo Churn) from the existing customer base
Revenue from new customers (E) and future events (A) are excluded
Crucially, the positive Expansion ARR from customer (D) is completely ignored, providing a pure measure of revenue retention
Worked Example
Starting ARR (August 31): $2,619,000
Contract log (September):
Account | Event | Effective by Sep 30? | ARR @ Sep 30 | Δ ARR in Sep | Category | Notes |
|---|---|---|---|---|---|---|
A | Existing customer cancels $10k plan, eff. Oct 1 | No | $0 | $0 | Future Churn | Cancellation effective next month. Not included in September's ARR. |
B | Existing customer cancels $20k annual plan, eff. Sep 30 | Yes | $0 | -$20,000 | Logo Churn | Lost an existing customer. |
C | Existing customer downgrades plan (-$9k), eff. Sep 20 | Yes | -$9,000 | -$9,000 | Contraction | Plan downgrade from existing customer. |
D | Existing customer upgrades plan (+$12k), eff. Sep 15 | Yes | +$12,000 | +$12,000 | Expansion | Upsell. Ignored in GDR calculation. |
E | New logo, annual $25k, starts Sep 5 | Yes | $25,000 | +$25,000 | New | New customer. Excluded from GDR calculation. |
GDR calculation:
Starting ARR: $2,619,000
Expansion ARR: +$12,000 (D) - This is explicitly excluded from the GDR calculation.
Contraction ARR: -$9,000 (C)
Logo Churn ARR: -$20,000 (B)
Ending ARR from Cohort: $2,619,000 - $9,000 - $20,000 = $2,590,000
Gross Dollar Retention: ($2,590,000 / $2,619,000) * 100 = 98.9%
Notes:
The GDR calculation only considers negative revenue changes (Contraction and Logo Churn) from the existing customer base
Revenue from new customers (E) and future events (A) are excluded
Crucially, the positive Expansion ARR from customer (D) is completely ignored, providing a pure measure of revenue retention
Best Practices
Strengthen core product value to prevent downgrades and churn.
Tight onboarding to first value fast; reduce early churn.
Attack churn/contraction drivers (product gaps, support, pricing pain).
Proactive renewals and save-plays on at-risk accounts.
Reduce involuntary churn (payments, dunning).
Best Practices
Strengthen core product value to prevent downgrades and churn.
Tight onboarding to first value fast; reduce early churn.
Attack churn/contraction drivers (product gaps, support, pricing pain).
Proactive renewals and save-plays on at-risk accounts.
Reduce involuntary churn (payments, dunning).
Best Practices
Strengthen core product value to prevent downgrades and churn.
Tight onboarding to first value fast; reduce early churn.
Attack churn/contraction drivers (product gaps, support, pricing pain).
Proactive renewals and save-plays on at-risk accounts.
Reduce involuntary churn (payments, dunning).
FAQs
What’s the difference between GDR and NDR? GDR excludes all expansion (upsell, cross-sell, add-ons). It measures how much recurring revenue you keep before any growth from existing customers. NDR includes expansion. It measures retention plus growth from existing customers.
Can GDR be above 100%? No. Since expansion is excluded, the maximum is 100%. Hitting 100% means no churn and no downgrades in the period.
What is a good GDR? Context matters, but as a rule of thumb: ≥90% is strong; enterprise-focused businesses often target ~95% or higher.
Why track GDR if NDR > 100%? GDR shows core stability. You can post 110% NDR from big upsells while GDR 80% reveals broad-base shrinkage. That’s fragile growth.
How is GDR different from Logo Retention? GDR tracks revenue dollars retained. Logo Retention tracks customer counts. You can keep 98% of logos yet have lower GDR if the lost 2% were large accounts.
FAQs
What’s the difference between GDR and NDR? GDR excludes all expansion (upsell, cross-sell, add-ons). It measures how much recurring revenue you keep before any growth from existing customers. NDR includes expansion. It measures retention plus growth from existing customers.
Can GDR be above 100%? No. Since expansion is excluded, the maximum is 100%. Hitting 100% means no churn and no downgrades in the period.
What is a good GDR? Context matters, but as a rule of thumb: ≥90% is strong; enterprise-focused businesses often target ~95% or higher.
Why track GDR if NDR > 100%? GDR shows core stability. You can post 110% NDR from big upsells while GDR 80% reveals broad-base shrinkage. That’s fragile growth.
How is GDR different from Logo Retention? GDR tracks revenue dollars retained. Logo Retention tracks customer counts. You can keep 98% of logos yet have lower GDR if the lost 2% were large accounts.
FAQs
What’s the difference between GDR and NDR? GDR excludes all expansion (upsell, cross-sell, add-ons). It measures how much recurring revenue you keep before any growth from existing customers. NDR includes expansion. It measures retention plus growth from existing customers.
Can GDR be above 100%? No. Since expansion is excluded, the maximum is 100%. Hitting 100% means no churn and no downgrades in the period.
What is a good GDR? Context matters, but as a rule of thumb: ≥90% is strong; enterprise-focused businesses often target ~95% or higher.
Why track GDR if NDR > 100%? GDR shows core stability. You can post 110% NDR from big upsells while GDR 80% reveals broad-base shrinkage. That’s fragile growth.
How is GDR different from Logo Retention? GDR tracks revenue dollars retained. Logo Retention tracks customer counts. You can keep 98% of logos yet have lower GDR if the lost 2% were large accounts.
Related Metrics
Commonly mistaken for:
Net Dollar Retention (NDR) (Includes expansion; can be >100%. GDR excludes expansion; max 100%)
Logo Retention (% of customers kept, not ARR/MRR dollars kept)
Related Metrics
Commonly mistaken for:
Net Dollar Retention (NDR) (Includes expansion; can be >100%. GDR excludes expansion; max 100%)
Logo Retention (% of customers kept, not ARR/MRR dollars kept)
Related Metrics
Commonly mistaken for:
Net Dollar Retention (NDR) (Includes expansion; can be >100%. GDR excludes expansion; max 100%)
Logo Retention (% of customers kept, not ARR/MRR dollars kept)
Index