Software and IT services
Customer cohort retention and churn
Measure starting-customer retention separately from new and reactivated customer growth.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
retained = starting customers - starting customers lost; ending = retained + new + reactivated
Use distinct customers, a fixed period and mutually exclusive beginning, new and reactivated groups. New customers who left before period end do not count as active additions. Customer retention is not revenue retention or a prediction of lifetime value. Use your own records for the same scope and period. Example figures are illustrative, not industry benchmarks. Results exclude income taxes and any cost you have not entered. Check the result before pricing work or committing resources.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Active customers at start of period (customers): Use the matching measured quantity, time log, schedule or clearly stated estimate. Zero means intentionally none; an unknown amount is not zero.
- Those starting customers lost by period end (customers): Use the matching measured quantity, time log, schedule or clearly stated estimate. Zero means intentionally none; an unknown amount is not zero.
- New customers still active at period end (customers): Use the matching measured quantity, time log, schedule or clearly stated estimate. Zero means intentionally none; an unknown amount is not zero.
- Previously inactive customers active again at period end (customers): Use the matching measured quantity, time log, schedule or clearly stated estimate. Zero means intentionally none; an unknown amount is not zero.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Starting-customer retention is 92.00 % for the illustrative inputs below.
Example inputs
- Active customers at start of period: 100 customers
- Those starting customers lost by period end: 8 customers
- New customers still active at period end: 20 customers
- Previously inactive customers active again at period end: 3 customers
- Starting-customer retention
- 92.00 %
- Starting-customer churn
- 8.00 %
- Ending active customers
- 115 customers
- Starting customers retained
- 92 customers
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Measure starting-customer retention separately from new and reactivated customer growth. Inputs come from your own records and stated assumptions; no rates or legal limits are looked up.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.