Result
Retention Rate
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Retention Rate = (customers at period end − new customers) ÷ customers at period start × 100%. New customers are subtracted from the end count — otherwise growth from new customers would mask churn among existing ones, and Retention Rate would look artificially high.
The mechanics are exactly the same as employee Retention Rate — just applied to a customer base instead of staff: the metric answers what share of the customers the company started the period with are still with it by the end, independent of new inflow.
Retention Rate and Churn Rate are essentially mirror metrics (Retention + Churn ≈ 100%), but they're computed over different denominators if the Churn Rate formula uses the average customer base for the period rather than the starting one — because of that, the two figures don't always add up to exactly 100%.