Customer retention rate calculator
Customer retention rate is the share of customers you had at the start of a period who are still customers at the end. Subtract new customers gained from customers at the end, divide by customers at the start, and multiply by 100. Enter your three numbers below to calculate it.
Calculator
Formula
Retention rate = ((E minus N) / S) x 100, where S is customers at the start of the period, E is customers at the end of the period, and N is new customers gained during the period.
Worked example
Illustrative example: a salon starts the quarter with 200 customers (S), ends with 210 (E) and gained 30 new customers (N). Retention rate = ((210 minus 30) / 200) x 100 = 90%. These are fictional numbers, not a benchmark.
Frequently asked questions
What is the customer retention rate formula?
Retention rate = ((E minus N) / S) x 100. S is customers at the start of the period, E is customers at the end, and N is new customers gained during the period.
Why subtract new customers?
New customers were not in the starting group, so counting them would make retention look higher than it is. The formula only measures how many of the starting customers stayed.
What period should I use?
Use a period that matches how often your clients usually visit, such as a quarter for a salon. Keep the same period each time so you can compare results fairly.