Customer Retention Rate Calculator
Enter customer counts for the period.
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Retention rate
Retention rate
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Churn rate
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Customers lost
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Net growth
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Customer Retention Rate Calculator by TheCalcTools
How the Customer Retention Rate Calculator works
Retention rate = (customers at the end − new customers) ÷ customers at the start. It excludes new customers so that growth does not hide losses.
Churn is the complement. Keeping customers is usually far cheaper than winning new ones.
The formula
Retention = (E − N) ÷ S
Worked example
Using the default values shown in the calculator:
| Customers at the start | 1200 |
|---|---|
| New customers acquired | 260 |
| Customers at the end | 1290 |
- (1,290 − 260) ÷ 1,200 = 85.8% retention, 14.2% churn.
Result:
| Retention rate | 85.8% |
|---|---|
| Churn rate | 14.2% |
| Customers lost | 170 |
| Net growth | 7.5% |
Frequently asked questions
Monthly or yearly?
Either, but compare like with like. 2% monthly churn compounds to about 22% yearly.
Sources and further reading
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This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.