Customer Retention Rate Calculator
Calculate customer retention rate and attrition rate with detailed breakdown
Calculator
Business
Customer
Retention
Analytics
Customer Data Input
Number of customers at the start of the period
New customers gained during the period
Total customers at the end of the period
Understanding Customer Retention Rate
Formula
Customer Retention Rate = (Total Customers - New Customers) ÷ Existing Customers × 100
Step-by-Step Calculation
- Count existing customers at the beginning of the period
- Count new customers acquired during the period
- Count total customers at the end of the period
- Calculate retained customers: Total - New customers
- Apply the formula: (Retained customers ÷ Existing customers) × 100
Key Benefits
- Measures customer loyalty and satisfaction
- Helps identify areas for improvement in customer experience
- Provides insights for business growth strategy
- Enables comparison with industry benchmarks
- Supports revenue forecasting and planning
Note: All calculations are performed in your browser for privacy and security. No data is transmitted to external servers.
Frequently Asked Questions (FAQ)
What is customer retention rate?
Customer retention rate measures the percentage of customers a company retains over a specific period. It indicates how well a business keeps its existing customers and is calculated as: (Total Customers - New Customers) / Existing Customers × 100.
What is attrition rate?
Attrition rate (also called churn rate) is the percentage of customers who stop doing business with a company during a specific period. It is calculated as: 100% - Customer Retention Rate.
How do I interpret the results?
A higher retention rate (closer to 100%) indicates better customer loyalty and satisfaction. Industry benchmarks vary, but generally: 90%+ is excellent, 80-90% is good, 70-80% is average, and below 70% may indicate issues that need addressing.
What time periods should I use for calculation?
Common periods include monthly, quarterly, or annually. The period you choose depends on your business model and customer behavior patterns. Subscription businesses often use monthly calculations, while others may prefer quarterly or annual assessments.
Is my data processed securely?
Yes, all calculations happen in your browser. No data is sent to any server, ensuring complete privacy and security of your business information.