How to Calculate Retention Rate Percentage
A compact guide to retention rate percentage, with the formula, quick examples, and common reporting mistakes.
To calculate retention rate percentage, divide the number of customers or users you kept by the number you started with, then multiply by 100.
Retention rate = (customers retained / customers at the start) * 100
If you want a quick check, use our percentage calculator to verify the math.
How the formula works
Retention measures how much of the original group stayed. The retained group is the part, and the starting group is the whole.
- Customers retained: the people still active at the end of the period
- Customers at the start: the original group you are measuring
- Multiply by 100 to turn the decimal into a percentage
Example 1, customer retention
A business starts the month with 250 customers and finishes with 220 of those same customers still active.
- 220 / 250 = 0.88
- 0.88 * 100 = 88%
The retention rate is 88%.
Example 2, app user retention
An app has 1,200 users at the start of the quarter, and 930 of them are still active at the end.
- 930 / 1200 = 0.775
- 0.775 * 100 = 77.5%
The retention rate is 77.5%.
How to find retained customers from a known rate
If you already know the starting group and the retention rate, multiply the starting number by the rate as a decimal.
Customers retained = starting customers * (retention rate / 100)
For example, if retention is 92% and you started with 500 customers, you retained 460. If you need that version of the math, see what is X% of Y.
Retention rate vs churn rate
Retention rate shows who stayed. Churn rate shows who left. In a simple model, they add up to 100%.
If retention is 88%, churn is 12%.
Common mistakes
- Using the ending customer count instead of the starting customer count
- Including new customers in the retained group
- Comparing retention rates across different time periods without labeling them clearly
Related percentage calculations
Retention rate is closely related to response rate percentage and conversion rate percentage, because all of them compare a part to a starting total.
If you are comparing before and after values instead, percentage change is the better formula.
FAQ
How do you calculate annual retention rate?
Use the same formula. Just make sure the starting group and the retained group both refer to the same year-long period.
Is retention rate the same as repeat purchase rate?
No. They can be related, but they measure different behaviors and may use different definitions.
Can retention rate be 100%?
Yes. That means every customer or user from the starting group stayed through the period.