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Retention

After every backup, older backups are removed according to three numbers in Settings → Backups → Retention:

Setting Keeps
Daily the newest backup of each of the last N days that have one
Weekly the newest backup of each of the last N weeks
Monthly the newest backup of each of the last N months

The rules add up: a backup kept by any of them stays. The newest backup is always kept, whatever the numbers.

The rules apply to each stack separately, and backups made before an update are counted separately from regular ones.

Days Daily Weekly Monthly
one day, e.g. Sunday 0 4 (or 5 to be sure to cover a full month) 0

You can always go back about four weeks.

Days Daily Weekly Monthly
all 7 0 0
Days Daily Weekly Monthly
all 7 4 6

The default. You can go back to any day of the last week, any week of the last month and any month of the last half year – at most 17 backups per stack, usually fewer because one backup can count for a day, a week and a month at once.

Days Daily Weekly Monthly
all 14 0 12

Not much. Files that did not change are stored only once, no matter how many backups contain them. What grows the bucket is data that changes – many backups of an app whose files change a lot each day take more space.