# How To Calculate Net Revenue Retention in SugarCRM | Arithmix

Learn how to calculate net revenue retention in SugarCRM with our comprehensive guide. Discover key metrics and strategies to optimize your revenue growth and retention rates. Boost your SugarCRM performance today!

Calculating net revenue retention is an important aspect of any business, as it helps you understand how much revenue you are retaining from your existing customers. This is particularly important for businesses that rely heavily on recurring revenue, such as subscription-based services or SaaS companies. In this article, we will discuss what net revenue retention is, when it is valuable to calculate it, and how to calculate it.

## What Is Net Revenue Retention?

Net revenue retention is a metric that measures the percentage of revenue that a company retains from its existing customers over a certain period of time. It takes into account the revenue lost due to churn (i.e., customers who cancel their subscriptions or stop using the service) and the revenue gained from upsells and cross-sells to existing customers.

For example, if a company has 100 customers at the beginning of the year and loses 10 customers due to churn, but gains an additional \$10,000 in revenue from upselling and cross-selling to existing customers, its net revenue retention rate would be 90%.

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

Net revenue retention is particularly valuable for businesses that rely heavily on recurring revenue. By understanding how much revenue you are retaining from your existing customers, you can identify areas where you can improve customer retention and increase revenue from existing customers.

Net revenue retention is also useful for identifying trends in customer behavior. For example, if your net revenue retention rate is consistently decreasing over time, it may be an indication that your customers are becoming less satisfied with your product or service.

## How To Calculate Net Revenue Retention

To calculate net revenue retention, you need to take into account the revenue lost due to churn and the revenue gained from upsells and cross-sells to existing customers.

Here is the formula for calculating net revenue retention:

Net Revenue Retention = (Revenue at the end of the period - Revenue lost due to churn) / Revenue at the beginning of the period x 100

For example, let's say your company had \$100,000 in revenue at the beginning of the year, lost \$10,000 in revenue due to churn, but gained \$20,000 in revenue from upselling and cross-selling to existing customers. Your net revenue retention rate would be:

Net Revenue Retention = (\$110,000 - \$10,000) / \$100,000 x 100 = 100%

A net revenue retention rate of 100% means that your company has retained all of its revenue from existing customers and has not lost any revenue due to churn.

In conclusion, net revenue retention is an important metric for businesses that rely heavily on recurring revenue. By understanding how much revenue you are retaining from your existing customers, you can identify areas where you can improve customer retention and increase revenue from existing customers. Calculating net revenue retention is a simple process that can provide valuable insights into your business's performance.

## How Do You Calculate Net Revenue Retention in SugarCRM

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