What is Retention Rate?

Retention rate definition: It is a percentage of a user cohort — say everyone who installed this week — that’s still active at a later time (D1, D7, D30, M1). In plain terms, retention rate meaning is how many users come back and keep using your app after install or signup.

In short: acquisition gets you downloads; retention proves value.

The formula is:

Retention Rate = (Active users from the cohort in Period N ÷ Total users in the cohort) × 100

Example (classic): 270 of 1,000 users active on Day 7 → D7 = 27%.

Example (rolling): 420 of 1,000 users active on or after Day 7 → D7 (rolling) = 42%.

How to calculate Retention Rate

Classic retention: counts users active on the exact day/period (e.g., used the app on Day 7).

Rolling retention: counts users active on or after that day (e.g., used the app on Day 7 or later).