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

Learn how to calculate Gross Dollar Retention in JD Edwards Enterprise One with our comprehensive guide. Increase your understanding of this important metric and improve your financial analysis skills.

Calculating gross dollar retention is an important metric for any business looking to measure its revenue growth. It’s a simple calculation that can provide valuable insights into the health of your business. In this article, we’ll explain what gross dollar retention is, when it’s valuable to calculate, and how to calculate it.

## What Is Gross Dollar Retention?

Gross dollar retention is a measure of how much 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, as well as revenue from new customers who were referred by existing customers. Essentially, it’s a way of measuring the effectiveness of your customer retention efforts.

For example, if your business generated \$100,000 in revenue from existing customers in the first quarter of the year, and \$50,000 of that revenue came from customers who renewed their subscriptions or made repeat purchases, your gross dollar retention rate for that quarter would be 50%.

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

Gross dollar retention is valuable to calculate for any business that relies on recurring revenue or repeat purchases. It can help you identify areas where you may be losing customers, and where you can focus your efforts to improve customer retention. It can also help you forecast future revenue growth and identify opportunities for upselling or cross-selling to existing customers.

Additionally, gross dollar retention can be a useful metric for investors or stakeholders who are interested in the long-term health and growth potential of your business. By demonstrating a high gross dollar retention rate, you can show that your business is able to retain its customers and generate predictable revenue over time.

## How To Calculate Gross Dollar Retention

To calculate gross dollar retention, you need to know the total revenue generated from existing customers over a given period of time, as well as the revenue generated from customers who renewed their subscriptions or made repeat purchases. Here’s the formula:

Gross Dollar Retention Rate = (Revenue from Existing Customers – Revenue Lost from Existing Customers) / Total Revenue from Existing Customers

For example, let’s say your business generated \$200,000 in revenue from existing customers in the first quarter of the year. Of that revenue, \$50,000 came from customers who renewed their subscriptions or made repeat purchases. However, you also lost \$10,000 in revenue from customers who cancelled their subscriptions or did not make repeat purchases. Using the formula above, your gross dollar retention rate for the quarter would be:

Gross Dollar Retention Rate = (\$200,000 - \$10,000) / \$200,000 = 95%

A gross dollar retention rate of 95% indicates that your business is retaining a high percentage of its existing customers and generating predictable revenue over time.

In conclusion, calculating gross dollar retention is a simple but valuable way to measure the health and growth potential of your business. By understanding what it is, when it’s valuable to calculate, and how to calculate it, you can gain valuable insights into your customer retention efforts and make informed decisions about the future of your business.

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

JD Edwards Enterprise One 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 Enterprise One 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 Enterprise One, 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.