Free tool
Customer retention rate calculator
Enter three numbers to get your customer retention rate and churn rate. Nothing is sent anywhere — the calculation runs entirely in your browser.
Customer retention rate formula
Retention rate = ((E − N) ÷ S) × 100
S — customers at start of period
E — customers at end of period
N — new customers acquired in the period
Reading the number
Your retention rate is a diagnosis, not a grade
A rate that looks low for a subscription business can be healthy for furniture or appliances. What matters is the trend in your own number and the gap between first and second purchase, which is where most brands lose the most.
If the number surprised you, the useful next step is finding out where customers drop off — which cohort, which product, which point in the cycle. That is what a discovery call covers.
Common questions
Retention rate FAQs
What is the customer retention rate formula?
Retention rate = ((customers at end of period − new customers acquired during the period) ÷ customers at start of period) × 100. Subtracting new customers is the step people skip, and it is what stops acquisition from disguising churn.
What is the difference between retention rate and churn rate?
They are two views of the same number: churn rate = 100 − retention rate. Retention counts who stayed, churn counts who left.
What period should I measure over?
Match it to your purchase cycle. Monthly works for subscriptions and consumables. Quarterly or annually is more meaningful for considered purchases where a customer was never going to buy again within thirty days anyway.