What is app retention rate?

Definition

App retention rate is the percentage of users who come back to an app a given number of days after installing it — usually measured on day 1, day 7 and day 30.

Formula

Day-N retention = users active on day N after install ÷ users who installed on day 0 × 100

For example, if 1,000 people install on Monday and 250 open the app again a week later, day-7 retention is 25%.

Why it matters

Retention shows whether people find lasting value. It drives lifetime value, makes paid user acquisition profitable or not, and is a quality signal in app store ranking, especially on Google Play.

Benchmarks vary widely by category: games and social apps behave very differently from finance or utilities. Compare your own cohorts over time rather than chasing an industry number.

How to improve it

The opposite of retention is churn rate. Daily engagement is captured by DAU/MAU.