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Customer Retention Rate Calculator

Calculate the share of starting customers retained through period end after excluding newly acquired customers.

Starting values are an editable worked example.

How to use

Calculate the share of starting customers retained through period end after excluding newly acquired customers.

  1. Enter Starting customers.
  2. Enter Ending customers.
  3. Enter New customers.
  4. Calculate, then review the metric definition and comparison limits.

How it is calculated

Retention = (ending customers − new customers) ÷ starting customers × 100

Example

Starting with 1,000 customers and ending with 950 including 100 new means 850 starting customers retained: 85% retention and 150 lost.

Important notes

The figures must represent a defined starting cohort and genuinely exclude new customers. Reactivated customers need a consistent classification policy.

Worked examples and interpreting results

Starting with 1,000 customers and ending with 950 including 100 new means 850 starting customers retained: 85% retention and 150 lost.

Worked examples and interpreting results
CaseCalculationResult
Retained950 − 100850
Retention rate850 ÷ 1000 × 10085 %

How to check the result

The figures must represent a defined starting cohort and genuinely exclude new customers. Reactivated customers need a consistent classification policy.

Frequently asked questions

Are reactivated customers new or retained?

Use a consistent policy based on your analysis definition. The key is not changing classification across periods without disclosure.

Should the inputs use the same period?

Yes. Use figures from the same reporting period and accounting definition so balances and flows remain comparable.

Is the result enough for a decision?

No. The metric summarizes a numerical relationship; compare it with company history, industry context, and accounting or operating policies.