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Customer Retention

Measure how many customers you keep across a period.

About Customer Retention

New customer additions are backed out of the ending count to reveal how many existing customers stayed. Retained customers cost far less to sell to and compound more value, so churn is a leading profit signal.

Formula

Customer Retention

Retained = ending - new; retention = retained / start x 100

churn
Portion of the base lost during the period

Worked example

With the default values below, Customer Retention returns Retention Rate of 75.0%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Customers at startminimum 1
1,000
Customers at end
900
New customers added
150

Results

Customers Retained
750
Retention Rate
75.0%
Churn Rate
25.0%

Step by step

  1. 1Values used
  2. 2Customer Retention
  3. 3Retention Rate= 75.0
  4. 4Customers Retained= 750
  5. 5Churn Rate= 25.0

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 1 decimal place, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Customer Retention calculated?

Retained = ending - new; retention = retained / start x 100 New customer additions are backed out of the ending count to reveal how many existing customers stayed.

Why does Customer Retention matter?

Retained customers cost far less to sell to and compound more value, so churn is a leading profit signal.

What values do I need to enter?

This calculator takes 3 inputs: Customers at start, Customers at end, New customers added. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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Customer Retention – Calculate Retention Rate | Calcrivo