Gross Dollar Retention (GDR) vs Net Revenue Retention (NRR)
GDR (Gross Dollar Retention) is capped at 100% and measures only retention without expansion; NRR (Net Revenue Retention) can exceed 100% by including upsells and expansions. GDR reveals the true retention floor; NRR reveals the combined power of retention and expansion.
At a Glance
Gross Dollar Retention (GDR)
Percentage of recurring revenue retained from existing customers
Net Revenue Retention (NRR)
Revenue retained plus expansion from existing customers
Key Differences
- GDR is always ≤ 100%; NRR can exceed 100% with net expansion.
- GDR = NRR minus expansion revenue, making them directly comparable.
- Investors examine both: GDR for downside resilience, NRR for growth potential.
- A high NRR with low GDR signals that large new expansions mask significant churn risk.
When to Use Each
Use Gross Dollar Retention (GDR) when…
Use GDR to assess pure retention quality without the noise of expansion. A GDR above 90% signals strong customer retention independent of upsell motions.
Full Gross Dollar Retention guide →Use Net Revenue Retention (NRR) when…
Use NRR to measure the full health of your existing customer base including expansion. A world-class NRR of 120%+ means you can grow revenue without acquiring new customers.
Full Net Revenue Retention guide →Formulas
GROSS DOLLAR RETENTION (GDR)
GDR = ((Beginning MRR - Churned MRR) / Beginning MRR) × 100
100 - Revenue Churn RateNET REVENUE RETENTION (NRR)
NRR = (Beginning MRR - Churned MRR + Expansion MRR) / Beginning MRR × 100
Charts
Gross Dollar Retention (GDR)
Net Revenue Retention (NRR)