What is Cohort Retention?
Cohort retention is the percentage of users/customers from the same start group (a “cohort”) who are still active after a specific number of time units.
It matters because retention is the backbone of value creation in recurring models: it drives LTV, improves CAC Payback Period, stabilizes cash flows, and sets the ceiling for metrics like NRR/GRR and efficient growth (Rule of 40, Burn Multiple).
Formula
Example
A cohort starts with 1,000 customers. After 3 weeks, 650 are still active.
How to Use the Cohort Retention Calculator
Frequently Asked Questions
Do I include new signups in “Still active from this cohort”?
No. Only count users/customers from the original cohort who are still active after the selected time period. Including new signups inflates retention and breaks cohort logic.
What exactly counts as “active” for cohort retention?
Use one meaningful action tied to value (e.g., logged in + completed a key action, created a project, sent an invoice). Don’t use vanity activity like “visited site” unless that’s genuinely your value moment.
Should I measure cohort retention in weeks, months, quarters, or years?
Match your product’s usage cycle. Weekly for daily/weekly habit products, monthly for subscription SaaS, quarterly for enterprise/long sales-cycle workflows, yearly for long-term memberships or renewals.
My retention looks “good” but revenue is flat—what am I missing?
Retention can be stable while expansion is weak. Pair cohort retention with Net Revenue Retention (NRR), Expansion MRR, and ARPA/ARPU to see whether retained users are growing spend or just sticking around at the same level.
Sources & Methodology