Logo retention
Also known as: customer retention rate
In short
Logo retention is the share of customer accounts that remain customers at the end of a period, ignoring how much each pays. It answers a simple question: of the customers we had, how many are still here?
It is the mirror image of logo churn. Logo retention plus logo churn equals 100 percent for the same cohort and period. Teams use whichever framing suits the conversation, with retention common in board and customer success reporting.
How to calculate logo retention
- Formula: Logo retention = (customers at end of period minus new customers added) / customers at start of period.
- Example: Say a team begins a year with 400 customers, adds 150, and ends with 480. Retained customers are 480 minus 150, which is 330. Logo retention is 330 / 400, or 82.5 percent.
- Cohort view: For precision, track a signup cohort over time and count how many of those same accounts are still active.
Logo retention vs. net revenue retention
Logo retention only counts customers. Net revenue retention counts dollars and includes expansion, so it can exceed 100 percent while logo retention is below 100 percent.
- Logo retention: Tells you how sticky the product is across the customer base.
- Net revenue retention: Tells you whether the revenue from existing customers is growing or shrinking, including upsell and downgrades.
When logo retention is the better metric
- Early-stage products: With few and similar contracts, counting customers is clearer than dollars.
- Small-deal segments: In self-serve or SMB, volume of accounts matters more than any single contract.
- Product-fit checks: Retention by segment shows which customers the product truly serves.
Common mistakes
- Counting new customers: Including accounts added during the period inflates the rate.
- Mixing definitions: Decide whether a paused or downgraded account counts as retained and apply it consistently.
- Reading it alone: A strong logo rate can hide the loss of your largest accounts. Pair it with revenue retention.
Logo retention FAQs
What is logo retention?
Logo retention is the percentage of customer accounts you keep over a period, regardless of contract size. It is the opposite of logo churn, and the two add up to 100 percent for the same group of customers.
How do you calculate logo retention?
Subtract customers added during the period from your ending customer count, then divide by the customer count at the start. Multiply by 100 for a percentage. Tracking a fixed signup cohort gives an even cleaner result.
What is the difference between logo retention and net revenue retention?
Logo retention counts how many customers stay. Net revenue retention measures revenue from the same customers over time, including expansion, downgrades, and cancellations. Revenue retention can pass 100 percent through upsell even if some logos leave.
Why does logo retention matter?
It shows whether customers find enough lasting value to stay. Low logo retention signals product-fit, onboarding, or targeting problems and raises acquisition cost per retained customer, because many wins are replacing losses rather than adding growth.
