TinyKPI

CUSTOMER RETENTION

Customer Retention Rate Calculator

Enter the start and end counts for one period. New customers are removed before retention is calculated.

Customer countsUse the same definition of active customer at the start and end.
Period and target optionalUseful when comparing this result with another period.

Your numbers stay in your browser.

CUSTOMER RETENTION

Did the customers you started with stay?

New customers can grow the ending count while existing customers leave. Retention separates those two. To agree on goals and next steps with an individual customer, use the customer success plan template.

THE FORMULA

Remove new customers first.

Ending customers include everyone still active. Take away customers acquired during the period before comparing the count with the start.

Customer retention rate(Ending customers − new customers) ÷ starting customers × 100

EXAMPLE

1,000 customers at the start, 1,100 at the end, 200 new

Of the 1,000 starting customers, 900 remained. The business retained 90% and lost 100 customers, even though the total customer count grew.

Starting customers
1,000
Customers retained
900
Retention
90%

COMPARE CLEANLY

Keep the period and customer definition the same.

Compare monthly with monthly, or quarterly with quarterly. Decide how to count paused, reactivated, and annual-plan customers before you start comparing.

Starting countCustomers active at the beginning of the period

Ending countCustomers active at the end, including new ones

New customersCustomers acquired during the same period

QUESTIONS

Customer retention questions

How do you calculate customer retention rate?

Subtract new customers from the ending customer count. Divide that number by the customer count at the start of the period, then multiply by 100.

Why are new customers subtracted?

The ending count includes customers who joined during the period. Subtracting them shows how many of the customers you started with actually remained.

What is the difference between retention and churn?

They describe the same starting group from opposite directions. If retention is 92%, churn is 8% for that period.

What counts as an active customer?

Use one consistent rule at both dates: for example, a paying subscriber, an account with a current contract, or a customer who ordered in a defined window.

Can I compare retention across periods?

Yes, when the periods are the same length and you use the same active-customer rule. The monthly equivalent is useful when a period covers more than one month.