# How To Calculate Net Dollar Retention in Sage Contractor | Arithmix

Learn how to calculate net dollar retention in Sage Contractor with our step-by-step guide. Increase your understanding of this important metric and improve your business's financial performance.

Calculating net dollar retention is an important metric for any business looking to measure its success in retaining customers and generating revenue. In Sage Contractor, this calculation can be done easily with the right tools and knowledge. Here's how to do it:

1. Start by determining your starting revenue for a given period. This could be a month, quarter, or year, depending on your needs.
2. Next, subtract any revenue lost due to customer churn or cancellations during that same period.
3. Finally, add any revenue gained from upsells or cross-sells from existing customers during that same period.
4. The resulting number is your net dollar retention for that period.

It's important to note that this calculation only takes into account revenue generated from existing customers, not new customer acquisition. However, it can still provide valuable insights into the health of your business and its ability to retain customers over time.

## What Is Net Dollar Retention?

Net dollar retention is a metric used to measure the amount of revenue a business is able to retain from its existing customer base over a given period of time. It takes into account both revenue lost due to customer churn and revenue gained from upsells or cross-sells to existing customers.

By tracking net dollar retention over time, businesses can gain insights into their ability to retain customers and generate revenue from them. A high net dollar retention rate indicates that a business is doing well in retaining customers and generating additional revenue from them, while a low rate may indicate areas for improvement.

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

Calculating net dollar retention can be valuable for businesses in a variety of situations. For example, it can be useful for:

• Tracking the success of customer retention efforts over time
• Identifying areas for improvement in customer retention and upselling/cross-selling strategies
• Comparing net dollar retention rates across different time periods, products, or customer segments
• Providing insights into the overall health and growth potential of a business

Overall, net dollar retention is a valuable metric for any business looking to measure its success in retaining customers and generating revenue from them. By understanding how to calculate and track this metric, businesses can gain valuable insights into their customer retention efforts and identify areas for improvement.

## How Do You Calculate Net Dollar Retention in Sage Contractor

Sage Contractor 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 Sage Contractor 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 Sage Contractor, 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.