# How To Calculate Gross Dollar Retention in SAP Business One | Arithmix

Learn how to calculate Gross Dollar Retention in SAP Business One with this comprehensive guide. Discover the key metrics and formulas needed to accurately measure your business's revenue retention and make informed decisions.

Calculating gross dollar retention is an important metric for any business. It helps you understand how much revenue you are retaining from your existing customers over a given period of time. This metric is particularly useful for businesses that rely heavily on recurring revenue, such as subscription-based services or software as a service (SaaS) companies.

## What Is Gross Dollar Retention?

Gross dollar retention is a measure of how much revenue you are retaining from your existing customers. It takes into account any revenue lost due to customer churn, as well as any revenue gained from upsells or cross-sells to existing customers. Essentially, it tells you how much money you are making from your existing customer base.

To calculate gross dollar retention, you need to look at your total revenue from existing customers at the beginning of a given period (let's say a month) and compare it to your total revenue from those same customers at the end of the period. Any revenue lost due to customer churn during that period should be subtracted from the starting revenue, while any revenue gained from upsells or cross-sells should be added to the starting revenue.

For example, let's say you have 100 customers at the beginning of the month, and they are each paying you \$100 per month. That means your starting revenue for the month is \$10,000. By the end of the month, you have lost 10 customers, but you have also upsold 5 customers to a higher-priced plan, bringing in an additional \$500 in revenue. Your ending revenue for the month is \$9,500 (\$9,000 from the remaining 90 customers plus \$500 from the 5 upsells). Your gross dollar retention for the month is therefore 95% (\$9,500/\$10,000).

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

Gross dollar retention is valuable for any business that relies on recurring revenue from existing customers. By tracking this metric over time, you can identify trends and patterns in customer behavior that may be impacting your revenue. For example, if you notice a decline in gross dollar retention over several months, it may be a sign that your customers are becoming less satisfied with your product or service and are looking for alternatives.

Gross dollar retention is also useful for identifying opportunities to increase revenue from your existing customer base. By upselling or cross-selling to your existing customers, you can increase their lifetime value and improve your gross dollar retention. Additionally, by reducing customer churn, you can retain more revenue from your existing customers and improve your gross dollar retention over time.

In conclusion, calculating gross dollar retention is an important metric for any business that relies on recurring revenue from existing customers. By tracking this metric over time, you can identify trends and patterns in customer behavior, as well as opportunities to increase revenue from your existing customer base. So, start tracking your gross dollar retention today and see how it can help you grow your business!

## How Do You Calculate Gross Dollar Retention in SAP Business One

SAP Business 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 SAP Business 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 SAP Business 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.

## Calculating Gross Dollar Retention in Arithmix

Calculating metrics like Gross Dollar Retention is simple in Arithmix. Once you've created your free account, you’ll be able to import your SAP Business One data, and use it to create natural language formulas for metrics like Gross Dollar Retention.

Arithmix is designed to give you the power to build any calculations you want on top of your SAP Business One 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.