Customer Retention Calculator

How it is calculated

100 × (ending customers − new customers at end) ÷ starting customers

Interpret the result in context.

Use the same definition of an active customer throughout. The new-customer count must refer to those included in the ending count. Reactivations and customer identity changes require separate reconciliation; this aggregate formula cannot resolve them.

Keep the source, collection period and inclusion rules alongside the result. An arithmetic calculation cannot establish whether the data represents your customers or whether a change was caused by a particular initiative.

Reference: Shopify: customer retention and churn.

Choose the next question.

Use the result to decide what to investigate, then connect it to customer comments and operational observations. A single metric cannot describe the entire experience.