# How To Calculate Net Dollar Retention in Drift | Arithmix

Learn how to calculate net dollar retention in Drift with our comprehensive guide. Discover the key metrics and formulas you need to know to measure the success of your customer retention strategy and drive growth for your business.

Calculating net dollar retention is an important metric for any business, as it helps to determine the overall health of the company's revenue growth. In this article, we will walk you through the steps to calculate net dollar retention in Drift, a popular customer communication platform.

## What Is Net Dollar Retention?

Net dollar retention is a metric that measures the amount of revenue a company retains from its existing customers over a given period of time. It takes into account the revenue lost from customers who churned, as well as the revenue gained from upsells, cross-sells, and expansions within the existing customer base.

Net dollar retention is calculated by taking the revenue generated from existing customers at the end of a given period, and dividing it by the revenue generated from those same customers at the beginning of that period. This calculation gives you a percentage that represents the net change in revenue from your existing customer base.

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

Calculating net dollar retention is valuable for any business that relies on recurring revenue from its customer base. It helps to identify areas where revenue growth can be improved, and provides insights into the effectiveness of your customer retention and expansion strategies.

For businesses that operate on a subscription model, net dollar retention can be especially valuable. By tracking this metric over time, you can identify trends in customer behavior and adjust your pricing and product offerings accordingly.

Overall, calculating net dollar retention is a key component of any company's revenue growth strategy. By understanding this metric and taking steps to improve it, businesses can ensure long-term success and profitability.

## How Do You Calculate Net Dollar Retention in Drift

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