# How To Calculate Gross Dollar Retention in PeopleSoft | Arithmix

Learn how to calculate Gross Dollar Retention in PeopleSoft with this comprehensive guide. Discover the key metrics and formulas needed to accurately measure your company's revenue retention and growth. Boost your financial analysis skills and optimize your business strategy today.

Calculating gross dollar retention is an important metric for any business that wants to understand how much revenue it is retaining from its existing customers. In this article, we will explain 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 measure of how much revenue a business is retaining from its existing customers over a given period of time. It is calculated by taking the total revenue generated by a group of customers at the beginning of a period and comparing it to the total revenue generated by the same group of customers at the end of the period. The difference between these two figures is the gross dollar retention.

For example, if a business had 100 customers at the beginning of the year and those customers generated \$1 million in revenue, and at the end of the year, 80 of those customers were still with the business and generated \$800,000 in revenue, the gross dollar retention would be 80% (\$800,000/\$1,000,000).

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

Gross dollar retention is valuable to calculate for any business that wants to understand how much revenue it is retaining from its existing customers. It is particularly useful for subscription-based businesses, where the goal is to retain customers over a long period of time and generate recurring revenue.

By tracking gross dollar retention over time, businesses can identify trends and patterns in customer behavior and make data-driven decisions about how to improve customer retention. For example, if a business sees a decline in gross dollar retention, it may indicate that customers are not finding enough value in the product or service and the business may need to make changes to improve the customer experience.

## How to Calculate Gross Dollar Retention

To calculate gross dollar retention, you will need to gather data on the total revenue generated by a group of customers at the beginning of a period and at the end of the period. This data can be obtained from your accounting or customer relationship management software.

Once you have this data, you can calculate gross dollar retention using the following formula:

Gross Dollar Retention = (Total Revenue at End of Period / Total Revenue at Beginning of Period) x 100%

For example, if a business had \$1 million in revenue from a group of customers at the beginning of the year and \$800,000 in revenue from the same group of customers at the end of the year, the gross dollar retention would be:

Gross Dollar Retention = (\$800,000 / \$1,000,000) x 100% = 80%

By tracking gross dollar retention over time, businesses can gain valuable insights into customer behavior and make data-driven decisions about how to improve customer retention and grow revenue.

## How Do You Calculate Gross Dollar Retention in PeopleSoft

PeopleSoft 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 PeopleSoft 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 PeopleSoft, 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.