Enter your customer numbers above and click Calculate to see your retention rate, churn breakdown, and revenue impact.
The standard customer retention rate formula is simple. Take your ending customers, subtract new customers you gained, and divide by starting customers. Multiply by 100 to get a percentage.
Why subtract new customers? Because you only want to measure loyalty — whether old customers stayed. New customers haven't had the chance to churn yet, so they don't count in this measurement.
Example: You start January with 400 customers. You gain 60 new ones. You end January with 420 customers. Retention = ((420 − 60) ÷ 400) × 100 = 90%.
That means 40 customers (10%) left during the month.
| Metric | Formula |
|---|---|
| Retention Rate | ((CE − CN) / CS) × 100 |
| Churn Rate | 100 − Retention Rate |
| Churned Customers | CS − CE + CN |
| Net Change | CE − CS |
| Revenue Lost | Churned × ARPU |
Knowing your industry average helps you judge whether your retention rate is good or needs work.
| Industry | Avg. Retention | Status |
|---|---|---|
| SaaS / Software | 85–95% | per year |
| E-commerce | 25–35% | per year |
| Subscription Box | 55–70% | per year |
| Mobile App | 25–40% | 30-day |
| Banking / Finance | 75–85% | per year |
| Insurance | 80–90% | per year |
| Telecom | 75–80% | per year |
| Media / Streaming | 65–80% | per year |
A rate above your benchmark means your product and service is doing its job. Below benchmark means customers are leaving faster than expected. If you offer services rather than a product, your pricing also affects retention — the consulting rate calculator can help you set rates that keep clients coming back.
Gross Revenue Retention (GRR) only looks at revenue you kept from existing customers — it never exceeds 100%. It ignores upsells.
Net Revenue Retention (NRR) adds upsell and expansion revenue on top. Great SaaS companies hit NRR above 110%, meaning expansion more than offsets churn.
| Metric | Formula | Cap |
|---|---|---|
| GRR | (MRR_end − Expansion) / MRR_start | ≤ 100% |
| NRR | MRR_end / MRR_start | No cap |
For SaaS companies, NRR is often the most important metric investors watch. A strong NRR (above 120%) means revenue grows even with zero new customers. To model the full picture of what that retained revenue adds up to, the revenue calculator can help you project totals across periods.
Keeping a customer costs far less than finding a new one. Research shows that acquiring a new customer costs 5–7 times more than retaining an existing one. If you want to measure how well your acquisition efforts convert visitors into those new customers, use the conversion rate calculator alongside this one.
For subscription businesses, even a 1% improvement in monthly retention makes a huge difference over 12 months due to compounding.
Industry averages for annual customer retention rate. Use these to compare your business performance.
| Industry / Segment | Typical Retention Annual |
Good Target | Best-in-Class | Churn Equivalent |
|---|---|---|---|---|
| Enterprise SaaS | 90–95% | 92% | 97%+ | 5–10% |
| SMB SaaS | 70–80% | 80% | 88%+ | 20–30% |
| E-commerce (Repeat) | 25–35% | 40% | 60%+ | 65–75% |
| Subscription Box | 55–70% | 70% | 80%+ | 20–45% |
| Banking / Finance | 75–85% | 85% | 92%+ | 8–15% |
| Telecom | 75–80% | 82% | 88%+ | 12–25% |
| Insurance | 80–90% | 88% | 93%+ | 7–20% |
| Mobile App (30-day) | 25–40% | 45% | 60%+ | 40–75% |
| Media / Streaming | 65–80% | 78% | 87%+ | 13–35% |
| Healthcare | 77–85% | 83% | 90%+ | 10–23% |
Benchmarks vary by company size, market, and product type. Use these as a general guide, not absolute targets.
Retention and churn always add to 100%. This table shows the relationship across all common values.
| Retention Rate | Churn Rate | Monthly Equiv. If annual rate |
Customers Lost per 1,000 start |
Grade |
|---|
Monthly equivalent assumes the annual rate is distributed evenly. Actual monthly churn may vary.
How much revenue is lost or kept at different retention rates and average revenue per user ($/year). Based on 1,000 starting customers.
| Retention Rate | ARPU $100/yr | ARPU $500/yr | ARPU $1,000/yr | ARPU $5,000/yr | ARPU $12,000/yr |
|---|
Values show revenue retained annually from 1,000 starting customers. Higher retention = less revenue lost to churn. Currency: $
How many customers remain out of 1,000 starting customers after 1–5 periods at different retention rates.
| Retention Rate | After 1 Period | After 2 Periods | After 3 Periods | After 4 Periods | After 5 Periods |
|---|
Compounding effect: each period applies the retention rate to the previous remaining base. This shows why even small retention gains compound significantly over time.
NRR measures how much recurring revenue you keep from existing customers including expansions. Above 100% means existing customers generate more revenue over time.
| Company Type | Median NRR | Top Quartile | Best-in-Class | Note |
|---|---|---|---|---|
| Enterprise SaaS | 115% | 125% | 140%+ | High expansion via seats/modules |
| SMB SaaS | 102% | 110% | 120%+ | Higher churn, less expansion |
| Usage-Based SaaS | 120% | 135% | 150%+ | Grows with customer usage |
| Marketplace | 95% | 108% | 120%+ | GMV expansion offsets churn |
| E-commerce Subscription | 85% | 95% | 105% | High price sensitivity |
| Media / Content | 88% | 98% | 108% | Tier upgrades drive expansion |
| Developer Tools | 125% | 140% | 160%+ | Usage expands with company growth |
| Healthcare SaaS | 108% | 118% | 130% | Long contracts, steady expansion |
NRR above 100% means your revenue grows even without new customer acquisition. Public SaaS companies with 120%+ NRR often command premium valuations.
LTV = ARPU ÷ Churn Rate. How lifetime value changes with retention. Values shown per customer.
| Annual Retention | Annual Churn | LTV at $50 ARPU/mo | LTV at $100 ARPU/mo | LTV at $500 ARPU/mo | Avg. Customer Life |
|---|
LTV formula: ARPU × (1 / Monthly Churn Rate). Higher retention dramatically increases LTV. Currency: $