% of customers kept over a period. The Customer Retention Rate Calculator takes customers at the start of the period, customers at the end, new customers acquired during the period and returns customer retention rate plus churn rate, customers lost. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Marketing metrics are most useful as trends and comparisons between channels. Measure every campaign the same way, over the same period, and judge it against your gross margin rather than against revenue alone. Use the worked example below to check the maths against your own figures.
How the Customer Retention Rate Calculator works
Retention measures how many of the customers you started with are still with you, ignoring the new ones. Its mirror image is churn.
Worked example
With the example values (customers at the start of the period of 1000, customers at the end of 1050, new customers acquired during the period of 200), the customer retention rate is 85%; churn rate 15%, customers lost 150. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is customer retention rate calculated?
retention rate = (customers at end − new customers) ÷ customers at start.
Which figures do I need?
Customers at the start of the period, customers at the end, new customers acquired during the period. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
How often should I track this metric?
Weekly for live campaigns, monthly for channel comparisons, and always over the same period for spend and results so the figures line up.
