# How To Calculate Gross Dollar Retention in JD Edwards | Arithmix

Learn how to calculate gross dollar retention in JD Edwards with this comprehensive guide. Discover the key metrics and formulas needed to accurately measure your company's revenue retention and improve your financial performance.

Calculating Gross Dollar Retention is an important aspect of business analysis. It helps you understand how much revenue you are retaining from your existing customers. This metric is particularly useful for businesses that rely on recurring revenue or subscription-based models. In this article, we will discuss what Gross Dollar Retention is, when it is valuable to calculate it, and how to calculate it.

## What Is Gross Dollar Retention?

Gross Dollar Retention is a metric that measures the amount of revenue a business retains from its existing customers over a given period of time. It takes into account the revenue generated from customers who have renewed their subscriptions or made repeat purchases. This metric is calculated by dividing the revenue generated from existing customers in a given period by the total revenue generated in the previous period.

For example, if a business generated \$100,000 in revenue from existing customers in Q2 and \$150,000 in revenue in Q1, the Gross Dollar Retention rate would be 66.7% (\$100,000 / \$150,000).

## When Is It Valuable To Calculate Gross Dollar Retention?

Gross Dollar Retention is particularly valuable for businesses that rely on recurring revenue or subscription-based models. It helps businesses understand how much revenue they are retaining from their existing customers and whether they are successfully retaining customers over time. This metric is also useful for identifying trends in customer behavior and identifying areas where the business can improve its retention strategies.

For example, if a business has a high Gross Dollar Retention rate, it may indicate that the business is successfully retaining its customers and generating recurring revenue. On the other hand, a low Gross Dollar Retention rate may indicate that the business is struggling to retain its customers and may need to improve its retention strategies.

## How To Calculate Gross Dollar Retention

To calculate Gross Dollar Retention, you will need to gather data on the revenue generated from existing customers over a given period of time. This data can be obtained from your sales or accounting software.

Once you have this data, you can calculate Gross Dollar Retention using the following formula:

Gross Dollar Retention = (Revenue from Existing Customers in Current Period / Total Revenue from Previous Period) x 100

For example, if a business generated \$100,000 in revenue from existing customers in Q2 and \$150,000 in revenue in Q1, the Gross Dollar Retention rate would be 66.7% (\$100,000 / \$150,000).

It is important to note that Gross Dollar Retention should be calculated over a consistent period of time, such as a quarter or a year. This will ensure that you are comparing apples to apples and can accurately track changes in retention rates over time.

In conclusion, Gross Dollar Retention is an important metric for businesses that rely on recurring revenue or subscription-based models. By understanding how much revenue you are retaining from your existing customers, you can identify areas where you can improve your retention strategies and generate more recurring revenue over time.

## How Do You Calculate Gross Dollar Retention in JD Edwards

JD Edwards itself isn’t naturally geared towards letting you calculate complex metrics like Gross Dollar Retention. As an alternative, teams typically use products like Arithmix to import data from JD Edwards 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 JD Edwards, combine it with data from other systems, and create calculations like Gross Dollar Retention.

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.