Accounting Retention Rate (Monthly) Calculator Examples
Worked monthly client retention examples for accounting practices with different starting counts, client gains, churn, and net growth outcomes.
These examples show why retention and net client growth should be reviewed separately. A practice can grow overall while losing some opening clients, or shrink overall despite retaining most of its existing clients.
How to Read Your Results
Retention rate is the percentage of clients from the opening base who were still active at month end.
Retained clients are calculated by removing new clients from the closing client count.
Churn rate is the share of starting clients who did not remain active during the month.
Net client change compares total active clients at month end with total active clients at month start.
Review retention alongside net client change because new-client gains can offset client losses.
Assumptions & Important Notes
- Each scenario counts active clients once at the beginning and end of the same month.
- New clients are clients that first became active during that month.
- Results use client counts rather than client revenue or engagement value.
- The same definition of active client is used throughout each example.
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Frequently Asked Questions
What does a 93% monthly retention rate mean?
It means 93 out of every 100 clients active at the beginning of the month remained active at month end, on the assumptions used.
Can an accounting practice grow while retention is below 100%?
Yes. New clients can exceed the number of opening clients that left, producing positive net client growth.
Can net client change be negative when retention is high?
Yes. A practice may retain most opening clients but still lose clients overall if gains do not offset departures.
Should I compare monthly retention rates directly?
They are most useful when the practice uses consistent active-client definitions and the same reporting timing each month.
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