Customer Retention Rate Calculator

Customer retention rate shows what share of customers you kept over a period, excluding newly acquired ones.

Customer retention rate79.2%
Churn rate20.8%
Customers retained950
Get a Free Review of These Numbers

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)

Customer retention rate = (Customers at end − New customers gained) ÷ Customers at start × 100 Churn rate = 100 − Customer retention rate Customers retained = Customers at end − New customers gained

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.

Related Tools

You might also need

Want help improving these numbers?

Book a free consultation and I'll review your store and ads.