Customer Growth Rate Calculator

Customer growth rate formula

Customer Growth Rate=[(Number of customers at the end of the period −Number of customers at the start of the period ​)/Number of customers at the start of the period]×100

Understanding the customer growth rate result

Your customer growth rate for a given period can be either positive or negative.

• A positive customer growth rate indicates an increase in the number of customers. The higher the customer growth rate, the larger is the expansion of your customer base.
• A negative growth rate means that your customer base has shrunk. This indicates that your customers are churning and that you should work on your customer retention strategies.

When to calculate customer growth rate

Customer growth rate is a vital indicator that should be measured in the following key situations:

• During quarterly or annual business performance reviews
• After a customer acquisition campaign
• Before and after implementing a customer retention program
• While setting targets for upcoming periods
• While comparing your company’s performance to competitors or industry benchmarks
• During company valuation processes
• After major changes in your product or service

How to calculate Customer growth rate with example

Let’s say that the number of customers in your company was 50,000 last year and grew to 60,000 this year. You can calculate the growth rate as follows:

Customer Growth Rate=[(Number of customers at the end of the period −Number of customers at the start of the period ​)/Number of customers at the start of the period]×100

Customer growth Rate=[(60,000−50,000)/50,000]×100=20%

In this example, your customer growth rate is 20%, indicating that your company’s customer base expanded by 20% during the given period.

How to use the customer growth rate calculator

To calculate the customer growth rate, enter the number of customers at the end of a given period and the number of customers at the start of the period. The calculator will instantly calculate your customer growth rate, giving you an insight into the health of your customer base.