Formula
Retention rate = retained starting clients ÷ starting clients × 100
Churn rate = (starting clients − retained clients) ÷ starting clients × 100
Net change = ending clients − starting clients
What the result means
Retention isolates the share of the original cohort that returned. Net change can still be positive when retention is weak if enough new clients were acquired, so both measures should be reviewed together.
Define “active,” “returned,” and the measurement window before counting. Changing definitions makes period-to-period comparisons misleading.