# How To Calculate ARR Cohort Analysis in Coda | Arithmix

Learn how to perform ARR cohort analysis in Coda with this comprehensive guide. Discover the step-by-step process to calculate ARR and gain insights into your business's revenue trends.

ARR cohort analysis is a powerful tool for businesses to track the revenue generated by customers over time. By analyzing cohorts of customers who signed up for a service or made a purchase at the same time, businesses can gain insights into how their revenue is growing or declining over time. In this article, we'll explore what ARR cohort analysis is, when it's valuable to calculate it, and how to do it in Coda.

## What Is ARR Cohort Analysis?

ARR cohort analysis is a way of tracking the revenue generated by cohorts of customers over time. ARR stands for Annual Recurring Revenue, which is the amount of revenue a business generates from its customers on an annual basis. Cohorts are groups of customers who signed up for a service or made a purchase at the same time. By tracking the revenue generated by these cohorts over time, businesses can gain insights into how their revenue is growing or declining.

For example, let's say a business has two cohorts of customers: one that signed up in January and one that signed up in February. The January cohort generated \$10,000 in revenue in their first month, while the February cohort generated \$8,000 in their first month. Over the next few months, the January cohort generated \$5,000 in revenue each month, while the February cohort generated \$4,000 in revenue each month. By tracking the revenue generated by these cohorts over time, the business can see that the January cohort is more valuable than the February cohort, and can adjust their marketing and retention strategies accordingly.

## When Is It Valuable To Calculate ARR Cohort Analysis?

ARR cohort analysis is valuable for businesses that have a subscription-based model or rely on repeat purchases from customers. By tracking the revenue generated by cohorts of customers over time, businesses can gain insights into how their revenue is growing or declining, and can adjust their marketing and retention strategies accordingly.

For example, a software-as-a-service (SaaS) business might use ARR cohort analysis to track the revenue generated by cohorts of customers who signed up for their service in different months. By analyzing the revenue generated by these cohorts over time, the business can see which cohorts are more valuable and can adjust their marketing and retention strategies accordingly.

## How to Calculate ARR Cohort Analysis in Coda

To calculate ARR cohort analysis in Coda, you'll need to create a table that tracks the revenue generated by cohorts of customers over time. Here's how to do it:

1. Create a table with columns for the cohort start date, the month, and the revenue generated by that cohort in that month.
2. Populate the table with data for each cohort.
3. Use the SUMIFS function to calculate the total revenue generated by each cohort in each month.
4. Use the AVERAGE function to calculate the average revenue generated by each cohort over time.
5. Use the charting tools in Coda to create a chart that visualizes the revenue generated by each cohort over time.

By following these steps, you'll be able to calculate ARR cohort analysis in Coda and gain insights into how your revenue is growing or declining over time.

## How Do You Calculate ARR Cohort Analysis in Coda

Coda itself isn’t naturally geared towards letting you calculate complex metrics like ARR Cohort Analysis. As an alternative, teams typically use products like Arithmix to import data from Coda and build out dashboards.

## What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Coda, combine it with data from other systems, and create calculations like ARR Cohort Analysis.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

## Calculating ARR Cohort Analysis in Arithmix

Calculating metrics like ARR Cohort Analysis is simple in Arithmix. Once you've created your free account, you’ll be able to import your Coda data, and use it to create natural language formulas for metrics like ARR Cohort Analysis.

Arithmix is designed to give you the power to build any calculations you want on top of your Coda data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.