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Accounting Retention Rate (Monthly) Calculator

Calculate your monthly client retention rate for an accounting practice using starting clients, ending clients, and new clients gained.

Your Details

Overview

This monthly accounting retention rate calculator estimates the percentage of existing clients your practice keeps over a month. Enter your opening client count, closing client count, and clients newly acquired during the month to separate retention from client growth.

How it works

The calculator removes new clients from the end-of-month total to find how many of your starting clients remained. It then divides retained clients by the starting client count and multiplies by 100. For example, if you start with 100 clients, finish with 98, and gain 5 new clients, 93 of the original clients remain. Your monthly retention rate is therefore 93%.

How to use this calculator

  1. 1Enter the number of active clients at the beginning of the month.
  2. 2Enter the total number of active clients at the end of the month.
  3. 3Add the number of clients who were newly acquired during the month.
  4. 4Review the retention rate, retained-client count, churn rate, and net client change.

Example Calculation

Clients at Start of Month

100

Clients at End of Month

98

New Clients Gained During Month

5

Monthly Client Retention Rate

93.0%

The practice retained 93 of its 100 opening clients, producing a 93.0% monthly retention rate. Its monthly churn rate was 7.0%, while total active clients decreased by 2 overall.

Frequently asked questions

What is monthly client retention rate for an accounting practice?

It is the percentage of clients active at the start of a month who are still active at the end, excluding clients acquired during that month.

How do you calculate monthly retention rate?

Subtract new clients gained from end-of-month clients, divide the result by starting clients, and multiply by 100.

Why are new clients excluded from retention rate?

Retention measures whether existing clients stayed. Including new clients can make retention look stronger even when original clients have left.

What is the difference between retention and net client growth?

Retention focuses on opening clients who stayed, while net client growth compares the total number of clients at the end of the month with the total at the start.

Can a retention rate be above 100%?

Not under the standard client-retention formula when client counts are recorded consistently. A result above 100% may indicate that new or reactivated clients were classified incorrectly.

What counts as a churned accounting client?

A churned client is a client who was active at the start of the month but was no longer active by the end, based on your chosen client-status definition.

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Assumptions and warnings

Assumptions

  • A client is counted as retained when they were active at both the start and end of the month.
  • New clients are excluded from the retention calculation so that growth does not inflate the result.
  • Each active client is counted once, regardless of the value or number of services they use.
  • Results are operational estimates and depend on consistent client-status records.