Customer Retention Rate Calculator
Calculate the percentage of customers retained over time
About this calculator
A Customer Retention Rate Calculator measures what percentage of customers continue doing business with your company over a specific time period. This metric is crucial for businesses as it costs significantly less to retain existing customers than acquire new ones. By tracking retention rates, companies can evaluate customer satisfaction, identify areas for improvement, and make data-driven decisions to boost loyalty and profitability.
How to use
Enter the number of customers at the start of your chosen time period, then input how many customers you still have at the end of that period. The calculator will instantly compute your retention rate as a percentage, showing how effectively you're keeping customers engaged.
Frequently asked questions
What's a good customer retention rate?
Good retention rates vary by industry, but generally 80-90% is excellent, 60-80% is average, and below 60% needs improvement.
How often should I calculate retention rate?
Calculate monthly, quarterly, and annually to track trends and seasonal patterns in customer behavior and loyalty.
Does retention rate include new customers?
No, retention rate only measures existing customers who stay. New customers acquired during the period aren't included in calculations.