How this calculator works
Retention looks only at customers you had at the start. Remove the new customers won during the period from the ending count to find how many of the original group are still there, then divide by the starting count. The churn rate is the complement. Counting new customers inside the ending total without removing them would flatter retention, which is why they are subtracted first. Keep the period consistent: monthly figures give monthly retention.
Formula
Retained customers = ending customers - new customers. Retention rate = retained customers / starting customers × 100. Churn rate = 100% - retention rate.
Worked example
Starting with 1,000 customers, winning 200 and ending with 1,100, the retained count is 1,100 - 200 = 900. Retention is 900 / 1,000 = 90% and churn is 10%.
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Frequently asked questions
Why subtract new customers?
Because retention is about keeping the customers you already had. If new customers were included, a business could lose half its customers and still show high retention by winning many new ones.
Is retention the opposite of churn?
In this simple measure, yes: the two add to 100%. Revenue retention is different, because it includes upgrades and downgrades, and can exceed 100% when existing customers spend more.
What counts as retained?
A customer who is still active at the end of the period, using the same activity definition throughout. An annual subscription that renews counts as retained for the year; a monthly subscription renewed twelve times is retained in each month it is active.