Customer Retention Rate Calculator
Total customers at the beginning of the period.
Total customers at the end of the period.
Customers gained during this specific period.
Please check your inputs. "Start" must be greater than 0.
Customer Retention Rate (CRR)
0%
Churn Rate (Attrition)
0%
Customers Retained
0
Customers Lost
0
How to Calculate Your Customer Retention Rate
Customer Retention Rate (CRR) is a critical metric for any business, representing the percentage of existing customers who remain customers after a given period. Unlike customer acquisition, which focuses on growth through new sales, retention focuses on loyalty and the longevity of your relationship with existing clients.
The Customer Retention Formula
To calculate CRR, you need three specific data points for a set period (e.g., a month, quarter, or year):
- S (Start): The number of customers at the start of the period.
- E (End): The number of customers at the end of the period.
- N (New): The number of new customers acquired during that period.
CRR = [ ( E – N ) / S ] × 100
Why exclude new customers?
The goal of CRR is to measure how well you kept the customers you already had. If you simply compared the end count to the start count, a massive influx of new marketing leads could mask a high number of cancellations (churn). By subtracting N (new customers) from E (end count), you isolate the surviving customers from the original cohort.
Example Calculation
Let's say you run a subscription box service:
- You started the month with 200 subscribers (S).
- During the month, you lost 20 subscribers but gained 40 new ones (N).
- You ended the month with 220 subscribers (E).
Your calculation would look like this:
- Subtract new customers from the end total: 220 – 40 = 180.
- Divide 180 by the starting total (200): 180 / 200 = 0.9.
- Multiply by 100: 90% Retention Rate.
What is a "Good" Retention Rate?
A "good" rate varies heavily by industry. For SaaS (Software as a Service) companies targeting small businesses, 90%+ annual retention is often the target. For enterprise contracts, it should be closer to 98-99%. In e-commerce, retention rates are often lower due to the transactional nature of the business.
Retention vs. Churn
Retention and Churn are two sides of the same coin. If your Retention Rate is 90%, your Churn Rate is 10%. Lowering churn is the most effective way to increase the Lifetime Value (LTV) of your customer base.