Retention rate
Also called customer retention rate, churn rate vs retention rate, net revenue retention.
The share of customers, or of recurring revenue, still with you at the end of a period.
Customer retention rate = customers at the end of a period who were already customers at the start ÷ customers at the start. Start the month with 200 customers, lose 6, and retention is 194 ÷ 200 = 97 percent. Leave new customers out of both counts, or the rate rises just from growth.
Retention is 1 − churn when both use the same period and the same base. They stop matching when one counts customers and the other revenue, or when one includes new customers in the base.
Net revenue retention counts the MRR kept from the starting customers, including their upgrades: start at $20,000, lose $1,000 to cancellations and downgrades, gain $1,600 from upgrades, and net revenue retention is 103 percent. (Example numbers.) It can pass 100 percent while customers leave. See cohort retention analysis and the SaaS metrics dashboard.
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