Retention rate is the percentage of customers a business retains over a given period. This is a critical success metric for a subscription-based businesses model. Logically, a high retention rate would show that a business has a low churn rate.

Retention Rate = STILL_ACTIVE / START_ACTIVE

STILL_ACTIVE = Number of active users that continue their subscription
START_ACTIVE = Total number of active users at the beginning of time period

Reference

• Profitwell - How to calculate retention rate: Top 4 mistakes & retention rate formula
• ProductPlan - Retention Rate

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