What is Renewal Rate?
Also known as: Subscription renewal rate, contract renewal rate
Renewal Rate is the percentage of customers (or contract value) up for renewal in a period who actually renewed. Distinct from churn rate because it measures the active renewal moment, not passive retention.
What is Renewal Rate?
Only customers with contracts coming up for renewal count. Different from churn rate, which divides by your entire customer base. Renewal Rate isolates the renewal decision itself.
How to calculate Renewal Rate
Logo Renewal Rate = Customers Renewed / Customers Up for Renewal.
Dollar Renewal Rate = Renewed ARR / Up-for-Renewal ARR.
Both are useful: logo for customer count, dollar for revenue at stake.
Renewal Rate vs Retention
Retention (NRR/GRR) blends all customers including those mid-contract. Renewal Rate only measures the moment of decision — sharper for sales/CS teams to act on. Use both: NRR for executive reporting, Renewal Rate for renewal forecasting.
Why it matters
If your Renewal Rate is below 80% on annual contracts, you have a customer-success problem before you have a sales problem. Renewing existing dollars is 5–10× cheaper than acquiring new ones.