Churn and Retention Rate Calculator

Calculate the churn rate and the retention rate from the customers you had at the start and the customers who left during the period, and convert between monthly and yearly rates.

The values you enter are for the whole period you choose here (they are not monthly rates).
What you enter
customers
customers
Churn rate —
Details
Retention rate—
Churn rate converted to 1 month (compounded)—
Churn rate converted to 1 year, 12 months (compounded)—

This is a theoretical calculation that assumes the same churn rate every period. It does not account for new customers added during the period, customers who come back, or changes in the churn rate. Conversions between periods multiply retention rates (compounding); they do not add up churn rates or multiply a monthly rate by 12.

The value copied is the large value above, without the % sign.

Definitions

Converting between periods (compounded)

Retention multiplies across periods: retention over n periods = (retention in one period) to the power n.

The conversion assumes the same churn rate every month (or period). Real churn changes from period to period and with how long a customer has been subscribed, so this is only a theoretical guide.

You can choose 1, 3, 6 or 12 months. Converting to a longer period (monthly to yearly) is exact, using fractions. Converting to a shorter period (yearly to monthly) needs a root, so it is calculated with floating-point numbers and shown as a "rounded value".

Edge cases

Examples

Notes

Frequently asked questions

If the monthly churn rate is 5%, is the yearly churn rate 60%?

No. If 5% of the remaining customers leave every month, the retention after a year is 0.95 to the power 12, about 54.04%, and the churn rate is about 45.96%. Multiplying by 12 gives 60%, which counts the customers who already left again and is too high.

Does the churn rate change when I add new customers?

Not with this definition. The churn rate uses only the customers who were there at the start.

How are the churn rate and the retention rate related?

They add up to 100% (retention rate = 1 − churn rate).