Customer Retention Calculator
Calculate your retention rate and its impact on growth
Converge Team
Your Data
Results
Customer retention rate measures the percentage of existing customers who continue doing business with you over a specific period. It is the inverse of churn rate and one of the most important metrics for any recurring-revenue business because it directly determines the compounding growth potential of your customer base.
The economics are compelling. According to research by Bain & Company (the creators of NPS), increasing customer retention by just 5% can boost profits by 25-95%. Frederick Reichheld, who led this research, found that the profit increase comes from three sources: reduced acquisition costs, increased purchasing, and customer referrals.
Mixpanel's 2024 Product Benchmarks report analyzed 1.3 billion users and found that median 30-day retention across all product categories is just 35%. For SaaS specifically, the median monthly retention is around 95%, with top-quartile products achieving 98%+. The difference between 95% and 98% monthly retention translates to a 50% longer average customer lifetime.
For support teams, retention is the ultimate outcome metric. Every fast response, every resolved issue, every proactive check-in contributes to whether a customer stays or leaves. This calculator helps you quantify your retention performance and model the revenue impact of improvements.
How to Use This Calculator
- Enter starting customers: The number of customers at the beginning of the period.
- Enter ending customers: Total customers at the end (including new ones).
- Enter new customers: How many new customers were acquired during the period.
- Review results: See retention rate, implied churn, and the impact on customer lifetime.
Pro Tips
- Track cohort retention: Group customers by signup month and track each cohort's retention curve. This reveals whether your product is getting stickier over time.
- Set a 90-day target: Most churn happens in the first 90 days. If you can retain a customer for 3 months, they're likely to stay much longer.
- Measure by segment: Enterprise customers often retain at 97%+ while SMB retains at 90%. Blending them hides important patterns.
- Connect to support metrics: Customers who contact support and get fast, effective help often retain better than those who never contact support at all.