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What is Net Dollar Retention by Cohort?

Revenue retained and expanded within a signup cohort.

How to calculate it

Calculate Net Dollar Retention by Cohort as: Cohort revenue now / Cohort revenue at start × 100. Pull the inputs from your connected data and track the trend over time in your dashboard.

Examples

Example 1

The Jan-2025 cohort started at $50k and is now $58k -> 116%; that vintage is expanding.

Example 2

The Jan-2025 cohort started at $50k and is now $58k -> 116%, while the Jan-2024 cohort sits at 104%, showing newer customers expand faster.

Why it matters

Net dollar retention by cohort tracks revenue retained and expanded within a sign-up cohort, revealing durable expansion versus churn by customer vintage. It exposes whether newer cohorts are healthier or weaker than older ones, which a blended figure hides. Aggregating cohorts conceals decay or improvement patterns over time.

Benchmark context

Above 100% indicates compounding revenue within the cohort; compare cohorts over time to see whether retention is improving or degrading.

Common pitfalls

Aggregating cohorts hides decay patterns.

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