Customer Retention Rate Calculator
New customers removed, so it measures retention.
Retention rate
89.8%
10.2% churn
Subtracting new customers is what makes this a retention rate rather than a growth rate — a business can grow its customer count while retaining almost nobody, and the headline number would hide it entirely.
How the Customer Retention Rate Calculator works
Subtracting new customers is what makes this a retention rate rather than a growth rate. A business can grow its customer count while retaining almost nobody, and a headline count comparison hides that entirely.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I calculate retention rate?
End customers less new customers, divided by starting customers. Omitting the subtraction gives a number above 100% whenever you are growing, which is a growth rate wearing a retention label.
What is a good retention rate?
It depends enormously on category and purchase cycle. Consumables retain far better than durables. Compare against your own trend rather than against another business's number.
Should I measure by cohort?
Yes. A blended rate mixes mature customers with recent ones and moves for reasons that have nothing to do with retention. Cohort curves show what is actually happening.
How does retention affect valuation?
Directly and heavily. Retention determines lifetime value, and lifetime value determines what a customer base is worth. A point of retention is usually worth more than a point of acquisition.