Retention rate measures how many customers remain active after a period. The formula looks simple, but the definition of active changes by business model. A subscription, a membership, an app and a shop with repeat buyers should not use the same operational definition without thinking.
Use the Retention Rate Calculator when you know the starting customers, ending customers and new customers added during the period.
Subscription example
If you start with 500 subscribers, end with 470 existing subscribers still active and exclude new signups, retention is 94%. This helps you see whether the existing base is staying.
Repeat customer example
For ecommerce, retention might mean customers who bought again within 60 or 90 days. The period matters because some products are bought weekly and others only a few times per year.
App or membership example
For an app, retention may mean users who logged in, completed a core action or stayed subscribed. Choose the activity that reflects real value, not a vanity event.
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