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Customer Retention Rate Formula

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Customer Retention Rate measures the percentage of customers retained in the business out of the total customer base in a given period. Check FAQs
CRR=nec-ncbncb
CRR - Customer Retention Rate?nec - Existing Customers?ncb - Customers at Beginning?

Customer Retention Rate Example

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Here is how the Customer Retention Rate equation looks like with Values.

Here is how the Customer Retention Rate equation looks like with Units.

Here is how the Customer Retention Rate equation looks like.

4.2632Edit=100Edit-19Edit19Edit
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HomeIcon Home » Category Financial » Category Business » Category Business Metrics » fx Customer Retention Rate

Customer Retention Rate Solution

Follow our step by step solution on how to calculate Customer Retention Rate?

FIRST Step Consider the formula
CRR=nec-ncbncb
Next Step Substitute values of Variables
∴ CRR=100-1919
Next Step Prepare to Evaluate
∴ CRR=100-1919
Next Step Evaluate
∴CRR=4.26315789473684
LAST Step Rounding Answer
∴CRR=4.2632

Customer Retention Rate Formula Elements

Variables
Customer Retention Rate
Customer Retention Rate measures the percentage of customers retained in the business out of the total customer base in a given period.
Symbol: CRR
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Customer Retention RateOpen Variable
Existing Customers
Existing Customers are the one who consistently purchases products or services from your company.
Symbol: nec
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Existing CustomersOpen Variable
Customers at Beginning
Customers at Beginning refers to the total number of customers in the starting who buys something from a seller, vendor, or supplier in exchange for money or something else of value.
Symbol: ncb
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Customers at BeginningOpen Variable

Other formulas in Sales Metrics category

​Go Compound Annual Growth Rate
CAGR=(((EVSV)1ny)-1)⋅100
​Go Customer Selling Price
CSP=CP+(PM%⋅CP)
​Go EBIT
EBIT=R-OPEX
​Go Market Penetration
MP=(nTP)⋅100

How to Evaluate Customer Retention Rate?

Customer Retention Rate evaluator uses Customer Retention Rate = (Existing Customers-Customers at Beginning)/Customers at Beginning to evaluate the Customer Retention Rate, The Customer Retention Rate formula is defined as the percentage of customers retained in the business out of the total customer base in a given period. Customer Retention Rate is denoted by CRR symbol.

How to evaluate Customer Retention Rate using this online evaluator? To use this online evaluator for Customer Retention Rate, enter Existing Customers (nec) & Customers at Beginning (ncb) and hit the calculate button.

FAQs on Customer Retention Rate

What is the formula to find Customer Retention Rate?
The formula of Customer Retention Rate is expressed as Customer Retention Rate = (Existing Customers-Customers at Beginning)/Customers at Beginning. Here is an example- 4.263158 = (100-19)/19.
How to calculate Customer Retention Rate?
With Existing Customers (nec) & Customers at Beginning (ncb) we can find Customer Retention Rate using the formula - Customer Retention Rate = (Existing Customers-Customers at Beginning)/Customers at Beginning.
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