Free tool
Customer Retention Rate Calculator
A rising customer count can hide customers who leave. Retention rate takes new customers out of the calculation to keep only the ones who were already there.
Customer retention rate is the share of customers at the start of a period who are still customers at the end: (customers at end − new customers) ÷ customers at start × 100. Net revenue retention (NRR) compares, the same way, the recurring revenue of those same customers at the end and at the start.
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How retention rate is calculated
Retention rate = (Customers at end − New customers) ÷ Customers at start × 100 NRR = Recurring revenue of the same customers at end ÷ Recurring revenue at start × 100
2,000 customers at the start, 2,100 at the end including 300 new ones: 1,800 starting customers stayed, which is 90 %, and 200 left. Yet the total customer count grew by 5 %.
If those same customers paid 100,000 € a month at the start and 104,000 € at the end, net revenue retention is 104 %: increases from those who stay make up for those who leave. The churn rate calculator gives the other side, with customer lifetime value.
What the calculation helps you track
- Real loyalty of your customers, which growth from new ones can hide.
- What a won customer is worth: the longer they stay, the higher the acquisition cost you can pay.
Frequently asked questions
How do I calculate customer retention rate?
Subtract new customers from the customers at the end, divide by the customers at the start, then multiply by 100. (2,100 − 300) ÷ 2,000 × 100 = 90 %.
What is the difference with churn rate?
They complete each other: at 90 % retention, 10 % of starting customers left. Retention reads those who stay, churn those who leave.
What is net revenue retention (NRR)?
The recurring revenue of starting customers, measured at the end, divided by their revenue at the start. Above 100 %, their increases more than make up for the departures.
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