Retention Rate Calculator
Calculate customer retention rate, retained customers, and churn rate using your starting customers, ending customers, and new customers during a period.
Enter the number of customers at the start of the period.
Enter the total number of customers at the end of the period.
Enter the number of new customers acquired during the period.
How This Calculator Works
This calculator estimates retention by removing new customers from your ending customer count to find how many existing customers were retained. It then divides retained customers by starting customers to calculate retention rate. Churn rate is the percentage of starting customers not retained.
Formula
Retention Rate = ((Ending Customers - New Customers) / Starting Customers) * 100
Example
If you start the month with 1,000 customers, end with 1,100 customers, and added 200 new customers during the month, then retained customers equal 900. Your retention rate would be 90%.
Frequently Asked Questions
What is retention rate?
Retention rate measures the percentage of starting customers who stay with your business over a given period.
What is churn rate?
Churn rate is the percentage of starting customers who were not retained during the period.
Why do I subtract new customers?
New customers were not part of the starting customer base, so they need to be removed to measure how many existing customers stayed.
Can retention rate be over 100%?
No. A proper customer retention rate should not exceed 100%. If it does, one or more inputs are likely incorrect.
Who uses retention rate?
Retention rate is commonly used by SaaS companies, subscription businesses, ecommerce teams, marketers, and customer success teams.