User Retention Rate Calculator
Measure how well your product keeps customers over a specific period.
How to Calculate User Retention Rate
User retention rate is a critical growth metric that measures the percentage of users who continue to use your product or service over a specific period. It is the direct inverse of "Churn Rate." High retention indicates product-market fit and customer satisfaction.
The Retention Rate Formula
To calculate retention, you need three data points from a specific timeframe (e.g., a month or a quarter):
- E: Number of users at the end of the period.
- N: Number of new users acquired during the period.
- S: Number of users at the start of the period.
Step-by-Step Example
Let's say you start the month with 500 customers (S). During the month, you acquire 100 new customers (N). At the end of the month, you have 450 total customers (E).
1. Subtract new users from end users: 450 – 100 = 350.
2. Divide by start users: 350 / 500 = 0.7.
3. Multiply by 100: 70% Retention Rate.
Why Retention Matters for SEO and Growth
From a business perspective, retaining a customer is significantly cheaper than acquiring a new one (CAC vs LTV). In terms of digital presence, high retention often correlates with high engagement signals, which indirectly boosts brand authority and search engine trust. If users keep returning to your platform, it signals to search engines that your site provides lasting value.
What is a Good Retention Rate?
Benchmarks vary by industry. For SaaS, a 90%+ annual retention is considered excellent. For mobile apps, a 25% Day-30 retention rate is often the gold standard. Use this calculator to track your progress month-over-month to ensure your product improvements are actually keeping users around.