Customer Retention Rate Calculator
Find out what share of your existing customers stayed during a period. Enter the customer count at the start and end and the number of new customers you added; the calculator returns the retention rate, churn rate, customers lost and how retention compounds over time.
How to use the Customer Retention Rate Calculator
- Enter the customers you had at the start of the period.
- Enter the customers at the end, including new customers who are still active.
- Enter the new customers acquired during the period.
- Choose the period length to see yearly retention and lifetime in the right units.
- Read the retention and churn rates and check the cohort table.
Retention and churn formulas
- Customer retention rate = (E − N) ÷ S × 100
- Churn rate = (S − (E − N)) ÷ S × 100 = 100% − retention
- Net customer growth = (E − S) ÷ S × 100
- Average lifetime ≈ 1 ÷ churn rate (in periods)
- Yearly retention = monthly retention12 (or quarterly4, weekly52)
S = customers at the start, E = customers at the end, N = new customers acquired during the period.
Monthly retention compounded over a year
| Monthly retention | Monthly churn | Customers left after 12 months | Average lifetime |
|---|---|---|---|
| 99% | 1% | 88.6% | 100 months |
| 98% | 2% | 78.5% | 50 months |
| 97% | 3% | 69.4% | 33.3 months |
| 95% | 5% | 54.0% | 20 months |
| 92% | 8% | 36.8% | 12.5 months |
| 90% | 10% | 28.2% | 10 months |
| 85% | 15% | 14.2% | 6.7 months |
Ways to improve retention
- Improve onboarding so new customers reach their first success quickly.
- Watch early warning signs such as falling usage or unanswered support tickets.
- Ask for feedback from customers who leave and fix the most common reasons.
- Reward loyalty with annual plans, loyalty programs or extra value for long-term customers.
Frequently asked questions
What is the customer retention rate formula?
CRR = (E − N) ÷ S × 100, where S is the number of customers at the start of the period, E the number at the end and N the new customers acquired during the period. Subtracting N makes sure growth from new customers doesn't hide the loss of existing ones.
Can you show an example?
You start the month with 1,200 customers, gain 180 new ones and end with 1,260. Retained customers are 1,260 − 180 = 1,080, so retention is 1,080 ÷ 1,200 = 90% and churn is 10%.
How are retention rate and churn rate related?
For the same group and period they add up to 100%: churn rate = 100% − retention rate. A 90% monthly retention rate means a 10% monthly churn rate.
How do I convert monthly retention to annual retention?
Raise the monthly rate to the 12th power. 90% monthly retention gives 0.9^12 = 28.2% of the original customers after a year, while 98% monthly retention keeps 78.5%. Small monthly differences compound into large yearly ones.
What is a good customer retention rate?
It varies a lot by industry and business model. Subscription software and B2B services often target high monthly retention, while retail and consumer apps typically see lower figures. Compare against your own history and similar businesses rather than a single benchmark.
Why do I get an error that new customers are more than the end count?
The end count must include the new customers who are still active. If more new customers were added than you have at the end, some customer counts are probably from different dates or definitions.
Is my data uploaded?
No. The calculator runs in your browser and nothing is sent to a server.