NDR vs. GRR: The Two Retention Numbers That Matter
Two canonical formulas: – Gross Revenue Retention (GRR) = (Starting ARR − Contraction − Churn) ÷ Starting ARR – Net Dollar Retention (NDR) = (Starting ARR + Expansion − Contraction − Churn) ÷ Starting ARR GRR shows how well you keep what you have. NDR shows whether existing customers grow enough to offset losses. They…