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Account Retention vs Customer Churn

What is the difference between Account Retention and Customer Churn? Side-by-side definitions, formulas, and benchmarks for two of the most-watched SaaS metrics.

Definitions

What is Account Retention?

Account Retention measures the share of customer accounts that remain active over a period, separate from how much revenue those accounts expand or contract.

Full Account Retention definition →

What is Customer Churn?

Customer Churn measures the percentage of customer accounts lost over a given period.

Full Customer Churn definition →

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Account Retention vs Customer Churn at a Glance

Account Retention Customer Churn
Category Metrics Metrics
Formula Monthly Customer Churn = Customers Lost During Month / Customers at Start of Month
Benchmarks average: 2 % per month; target: 0–3 % per month
Calculator Customer Churn calculator

When Each Matters

Account Retention and Customer Churn answer different questions. Account Retention measures the share of customer accounts that remain active over a period, separate from how much revenue those accounts expand or contract. Customer Churn measures the percentage of customer accounts lost over a given period. In practice, healthy SaaS operators watch both, because each one catches failure modes the other misses.

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