Customer Retention Rate Calculator
Customer retention rate shows what share of customers you kept over a period, excluding newly acquired ones.
What is customer retention rate?
CRR = (customers at end − new customers) ÷ customers at start × 100. Churn rate is 100 − CRR.
How to use the customer retention rate calculator (formula)
What each field means
- Customers at start — Customers at the start of the period.
- Customers at end — Customers at the end.
- New customers gained — New customers gained during the period.
Worked example
Using these numbers: customers at start 1200, customers at end 1350, new customers gained 400.
The customer retention rate is 79.2%.
- Churn rate: 20.8%
- Customers retained: 950
What is a good retention rate?
Ecommerce retention is often 20–40% over a year; subscription businesses aim far higher. Improving it lowers the pressure on paid acquisition.
Tips to improve your result
- Use the same definition of “active customer” every time.
- Post-purchase emails and WhatsApp follow-ups raise retention.
- Measure retention by acquisition channel.
- A small retention gain often beats a big ad budget increase.
Frequently asked questions
What is the retention rate formula?
(End customers − new customers) ÷ start customers × 100.
Retention vs churn?
Churn is the share lost: 100 − retention rate.
How does retention affect LTV?
Higher retention means more orders per customer and higher LTV.
How can I improve retention?
Great delivery experience, follow-ups, loyalty offers and relevant remarketing.
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