KPIOperations & Supply Chain

Student Retention Rate

Percentage of students who continue into the next academic year without withdrawing

What is Student Retention Rate?

Student retention rate is the percentage of students who re-enrol for the next year. It shows how well an institution keeps its students.

Losing students hurts them and reduces income, so retention is a central concern.

How this KPI is measured

Function
Operations & Supply Chain
Sub-function
Student Retention
Industry
Education
Type
Lagging
Impact
Quality
Unit
%
Measurement frequency
Annual
Formula
(Students re-enrolling / Total students enrolled in prior year) × 100

How to calculate it

Divide students re-enrolling by total students enrolled in the prior year, and multiply by 100.

For example, if 4,500 of 5,000 students re-enrolled, retention is 90%.

Exclude students who graduated, and analyse by year of study, course and student group.

Where it is used

  • Spotting risks early

    Find at-risk groups.

  • Improving support

    Target help.

  • Forecasting numbers

    Plan capacity.

How to improve it

Tips and common mistakes

  • Exclude graduating students from the base.
  • Retention is often lowest after the first year.
  • Look at group differences.

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