Membership Retention Rate Calculator
Retention Rate
0.00%
Churn Rate (Attrition)
0.00%
Members Lost
0
Existing Members Retained
0
How to Calculate Membership Retention
Understanding your Membership Retention Rate (CRR) is crucial for the health of any subscription-based business, gym, club, or SaaS platform. It measures the percentage of customers you keep over a specific period, excluding any new acquisitions.
The Retention Rate Formula
This calculator uses the standard industry formula for calculating retention:
Retention Rate = ((E – N) / S) × 100
- E (End): Number of members at the end of the time period.
- N (New): Number of new members acquired during that period.
- S (Start): Number of members at the start of the time period.
Example Calculation
Let's look at a practical example for a fitness center:
- You start the month with 200 members (S).
- During the month, you gain 40 new members (N).
- At the end of the month, your total count is 220 members (E).
First, we subtract new members from the end count to find how many original members stayed:
220 (E) – 40 (N) = 180 Retained Members
Next, we divide by the starting count:
180 / 200 (S) = 0.9
Finally, multiply by 100 to get the percentage:
Retention Rate = 90%
This also means your Churn Rate is 10%, representing the 20 members who left.
Why Retention Matters More Than Acquisition
While acquiring new members is exciting, retaining existing ones is often more profitable. High retention rates indicate customer satisfaction, loyalty, and a stable recurring revenue stream. It typically costs 5 to 25 times more to acquire a new customer than to keep an existing one.
What is a Good Retention Rate?
Benchmarks vary by industry, but generally:
- SaaS: > 35% (Consumer) to > 90% (Enterprise)
- Gyms/Fitness: 60% – 75% annual retention is considered healthy.
- Subscription Boxes: 40% – 60% is common.