Customer Retention Rate Calculator

Enter customers at the start and end of a period and the new customers you won. Get your retention rate and churn rate. Free, no sign-up.

Period you are measuring

On the first day of the month.

On the last day of the month, including new customers.

Won during the month.

Customer retention rate
95%
950 of 1,000 starting customers stayed
Churn rate
5%
50 customers lost (100% minus retention)
RetainedChurned

Free. No sign-up. Everything is calculated in your browser, nothing you enter is sent anywhere.

How it's calculated

Retention rate
Retention % = ((E - N) / S) x 100
Churn rate
Churn % = 100 - retention %
Where
S = customers at start, E = customers at end, N = new customers won
Example: S = 1,000, E = 1,050 and N = 100 gives (1,050 - 100) / 1,000 x 100 = 95% retention and 5% churn.
Worked examples

Customer retention rate examples

Four periods worked through, including how growth can hide customer losses.

Monthly subscription

A SaaS business measuring one month.

1,000 customers at the start, 1,050 at the end, 100 new.

(1,050 - 100) / 1,000 x 100 = 95% retention, so churn is 100% - 95% = 5%.

Quarterly view

A team that reports by quarter.

500 customers at the start, 560 at the end, 120 new.

(560 - 120) / 500 x 100 = 88% retention and 12% churn for the quarter.

Growth hiding losses

Customer count went up, so everything looks healthy.

200 at the start, 230 at the end, 80 new.

Net growth is +15%, but retention is (230 - 80) / 200 = 75%. A quarter of the starting customers left.

Perfect retention

A small base where nobody left.

40 at the start, 55 at the end, 15 new.

(55 - 15) / 40 x 100 = 100% retention and 0% churn.

Interpreting retention

How to read your retention rate

Rules of thumb for measuring and comparing retention. Ranges vary a lot by market.

01

Subtract new customers before you divide

The end count includes people you won during the period. Removing them leaves only the starting customers who stayed, which is what retention measures.

02

Keep the period consistent

Monthly, quarterly and annual retention are not interchangeable. A 95% monthly rate is far lower over a year, so compare each period only with itself.

03

Retention and churn are two views of one number

They always add up to 100%. Retention is the better headline for a board or a customer success team, churn is easier for spotting a trend that is getting worse.

04

Look at revenue as well as customers

Counting customers treats a small account and a large one the same. Track revenue retention alongside it to see how much the losses cost.

FAQ

Questions people ask

How do you calculate customer retention rate?
Use ((E - N) / S) x 100. S is the number of customers at the start of the period, E is the number at the end, and N is the number of new customers won during the period. Subtracting N from E leaves the starting customers who stayed.
What is the difference between retention rate and churn rate?
Churn rate is the share of starting customers you lost, and retention rate is the share you kept. Churn = 100% minus retention, so a 92% retention rate means 8% churn.
What is a good customer retention rate?
It depends heavily on your market and the period you measure. Subscription and support-heavy businesses tend to aim for annual retention in the high 80s or above, but the most useful benchmark is your own trend over time.
Why is my retention rate over 100% or negative?
Retention should sit between 0% and 100%. Over 100% means the end count minus new customers is higher than the start count, so a figure is likely wrong. Negative means the end count is lower than the new customers, which happens when some new customers also left inside the period.
Do I use the same formula for revenue retention?
The structure is similar, but you work in revenue instead of customers: starting recurring revenue, minus churned and downgraded revenue, divided by starting revenue. This calculator is for customer counts only.
Is anything I enter stored?
No. The calculator runs entirely in your browser. Nothing you type is sent to a server or saved.
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