What is User Retention Rate?
Share of a cohort still active after N days.
How to calculate it
Calculate User Retention Rate as: Users active in period N / Users in cohort × 100. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
Of a 1,000-user cohort, 350 are still active on day 30 -> 35% D30 retention; watch the curve flatten.
Example 2
Of a 1,000-user cohort, 350 are active on day 30 and 300 on day 90 -> the curve flattening between day 30 and 90 is a healthy fit signal.
Why it matters
User retention rate measures the share of a cohort still active after a set number of days and is the best long-run signal of product-market fit. A retention curve that flattens rather than falling to zero indicates a core of users who find lasting value. Reporting a single day instead of the curve hides whether retention stabilizes.
Benchmark context
Look for the curve to flatten; the level varies by product type, but a curve that keeps declining toward zero signals weak product-market fit.
Common pitfalls
Reporting a single day instead of the curve.
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