ClarivoxxBy Abdessamad Ghanem

Free tool

Customer Retention Rate (CRR) Calculator

Customer retention rate = (customers at end − new customers) ÷ customers at start × 100. Churn rate is 100% minus CRR. Starting with 400 customers, adding 60 and ending with 430 gives (430 − 60) ÷ 400 = 92.5% retention, 7.5% churn and 30 customers lost over the period.

Customer retention rate

92.5%

You kept 370 of 400 starting customers. Watch the accounts that renew next and keep the rate stable.

Churn rate

7.5%

Customers lost

30

CRR = (430 − 60) ÷ 400 × 100 = 92.5%
Churn = 100% − 92.5% = 7.5%
Lost = 400 + 60 − 430 = 30

Frequently asked questions

How do you calculate customer retention rate?
Take the customers you had at the end of the period, subtract the new customers you won during it, and divide by the customers you had at the start. With 400 at the start, 60 new and 430 at the end, CRR is (430 − 60) ÷ 400 = 92.5%.
Why do you subtract new customers?
Retention measures how many existing customers stayed, so new customers would inflate it. In the example, 430 ÷ 400 would suggest 107.5% retention, while only 370 of the original 400 customers actually stayed.
What is a good customer retention rate?
It depends on your segment and period. Many B2B SaaS companies with larger contracts keep 90% or more of their customers a year, while products sold to small businesses often see lower annual retention. Compare yourself with your own past periods first.

About the author

Abdessamad Ghanem

Customer Experience & Customer Success Consultant · Founder of Clarivoxx

Abdessamad Ghanem works across Customer Support, Sales, Customer Success, Account Management and Partner Management. He writes Clarivoxx Insights for B2B SaaS professionals who own retention, adoption and customer outcomes.

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