From data to report in one minute or less. Ajelix BI is launched! 🚀 Get started for free.

Free Customer Retention Rate Calculator Online

Free Customer Retention Rate Calculator online banner

The customer retention rate calculator can help you tell what percentage of your customers stay with you over a specific period. A high retention rate indicates a strong customer base and a healthy business.

Calculate Customer Retention Rate

Customer Retention Rate Formula

Customer Retention Rate (CRR) = (Number of Customers at End of Period – Number of New Customers Acquired During Period) / Number of Customers at Start of Period


  • Number of Customers at End of Period: The total number of customers you have at the end of the chosen period (month, quarter, year, etc.)
  • Number of New Customers Acquired During Period: The total number of new customers you acquired during the specific period.
  • Number of Customers at Start of Period: The total number of customers you had at the beginning of the chosen period.

Struggling with manual calculations?
Setup automatic calculations on digital dashboard and track your data regularly. Fast registration and easy setup guaranteed.

Learn more

How To Calculate Customer Retention?

Time needed: 5 minutes

Here’s a step-by-step guide on how to calculate your customer retention rate

  1. Define the timeframe

    Decide on the specific period for which you want to calculate the retention rate. This timeframe should align with your business cycle. Common options include months, quarters, or years.

  2. Gather customer data

    You’ll need three pieces of data from your customer relationship management (CRM) system or other relevant sources for the chosen timeframe: Existing customers, new customers acquired, and the number of customers at the end of the period.

  3. Apply the formula

    Once you have collected the data, use the following formula to calculate the CRR: Customer Retention Rate (CRR) = (Customers at End of Period – New Customers Acquired) / Number of Customers at Start of Period x 100%

  4. Interpret the results

    The resulting percentage represents your customer retention rate for the chosen timeframe. A higher retention rate indicates a stronger customer base and a healthier business. Generally, you want to see a positive CRR, but what constitutes a “good” retention rate can vary depending on your industry.

Watch a video on how to calculate this metric 👇

Calculate Your Business Customer Retention Rate in Excel


Let’s say you run a subscription service and want to calculate the CRR for the last month. Here’s what the process might look like:

  1. Timeframe: You define the timeframe as the previous month (March 2024).
  2. Customer Data:
    • Starting Customers (S) = 100 (number of customers on March 1st)
    • New Customers (N) = 20 (customers who subscribed in March)
    • Ending Customers (E) = 110 (total customers at the end of March)
  3. Formula: CRR = ((110 – 20) / 100) x 100% = 90%
  4. Interpretation: Your CRR for March is 90%. This means that 90% of your customers from the beginning of the month remained subscribed by the end.

Additional Tips:

  • You can calculate retention rates for different customer segments, product categories, or marketing channels to gain deeper insights into which areas perform better in terms of retention.
  • Track your CRR over time to identify trends and measure the effectiveness of your customer retention strategies.
  • Remember that a healthy retention rate can vary depending on your specific industry. However, a higher retention rate is generally preferable as it signifies a more sustainable customer base.

Sure, here’s a concise version tailored for your blog on how measuring customer retention rate (CRR) benefits businesses:

Why Customer Retention Rate Matters

Measuring your customer retention rate (CRR) isn’t just a vanity metric. It’s a goldmine of insights that can boost your bottom line. Here’s how:

  1. Save Big, Earn More: It’s far cheaper to retain existing customers than acquire new ones. Plus, loyal customers tend to spend more, increasing your revenue stream.
  2. CLV: It’s All About Lifetime Value: CRR helps estimate how long customers stick around. This knowledge lets you maximize the revenue each customer brings in over their lifetime.
  3. Learn Why Customers Leave (and Stay): A dip in CRR might signal issues. Analyze it alongside other metrics to identify what’s causing churn and improve customer satisfaction.
  4. Beat the Competition: Loyal customers are your biggest advocates. A high CRR translates to a competitive edge, attracting new business through positive word-of-mouth.
  5. Data-Driven Decisions: CRR data empowers smarter choices across your business. From marketing campaigns to product development, you can allocate resources where they have the most impact.

Other calculators

Free net profit margin calculator online by ajelix banner

Free Net Profit Margin Calculator Online

May 16, 2024
The Net Profit Margin Calculator is a financial tool that shows what portion of your sales revenu…
free employee turnover rate online banner

Free Employee Turnover Rate Calculator Online

May 14, 2024
The employee turnover rate calculator can help you measure how frequently employees leave a compa…
Free liquid net worth calculator online banner

Free Liquid Net Worth Calculator Online

May 9, 2024
A liquid net worth calculator can help you measure your financial flexibility in the short term. …
Free profitability index calculator online banner

Free Profitability Index Calculator Online

May 2, 2024
The profitability index (PI) calculator is a financial tool used to judge the attractiveness of a…
Free revenue per employee calculator online - banner

Free Revenue Per Employee Calculator Online

April 30, 2024
Revenue per employee (RPE) is a metric that measures how much revenue each employee generates for…
free Customer Acquisition Cost Calculator online banner

Free Customer Acquisition Cost Calculator Online

April 25, 2024
Customer Acquisition Cost Calculator, or CAC, is a metric that tells a business how much it costs…

Setup and monitor your KPIs regularly using Ajelix BI

Ad hoc financial analysis report example from ajelix bi portal

You might also like

Ajelix BI version 2 is launched Ajelix news banner

Ajelix BI Version 2 Is Live: More Analytics & More Power

May 10, 2024
Unleash the true power of your data! 💥 Ajelix, the dynamic AI-powered BI platform built for SMBs,…
generative AI for data analytics banner blog article by ajelix

Generative AI For Data Analytics: What You’re Missing Out

April 18, 2024
Organizations across all industries are turning to data analytics to inform strategic decisions, …
Hoe to calculate business growth rate with examples and formula banner by ajelix

How to Calculate Business Growth Rate? Formula & Examples

April 16, 2024
Whether you’re a seasoned entrepreneur or just starting, measuring progress is vital to ide…
How to calculate average revenue per user formula & meaning example banner

Calculate Average Revenue Per User: ARPU Formula & Meaning

April 11, 2024
The metrics are king, there’s no doubt about it. They tell the story of your company’…
How to calculate revenue growth in Excel with examples and formulas banner by ajelix

How To Calculate Revenue Growth Rate: Formula & Examples

April 9, 2024
Revenue growth rate is a performance indicator, that helps understand if your sales efforts are y…
How to analyze data in Excel spreadsheet banner by author

How To Analyze Data In Excel Spreadsheet

April 4, 2024
Excel is the workhorse of data analysis in countless businesses. It can unlock valuable insights …