What is a good renewal rate?

For SaaS businesses, a renewal rate above 90% is generally considered healthy. Enterprise-focused products often target 95%+. SMB-focused products may see 80–90% as typical. Consumer subscriptions vary widely and often run lower than B2B.

What is the difference between renewal rate and retention rate?

Renewal rate measures the share of contracts or subscriptions that were due to renew and actually did renew. Retention rate (or logo retention) can be measured over any period and does not require a formal renewal event. For annual contracts, the two are nearly identical; for month-to-month subscriptions, retention rate is more common.

How is renewal rate different from net revenue retention (NRR)?

Renewal rate is a count-based metric — it counts contracts, not dollars, and ignores expansion or contraction. NRR (or net dollar retention) measures revenue including upsells and downgrades. A business can have a high renewal rate but low NRR if customers consistently downgrade at renewal.

Should I measure renewal rate by customer count or by revenue?

Both are useful. Count-based renewal rate (logo renewal rate) shows how many customers stay. Revenue-based renewal rate weights by contract size and reveals whether high-value customers renew at the same rate as low-value ones. If they differ, segment and investigate.

What counts as a renewal period?

A renewal period is any time window — monthly, quarterly, or annual — in which contracts or subscriptions reach their expiry date and the customer decides whether to continue. Measure consistently within the same window to make periods comparable.

Renewal Rate Calculator

Name: Renewal Rate Calculator
Availability: InStock
Author: Nham Vu

Calculate subscription or contract renewal rate, churn rate, and lost revenue from non-renewals in seconds.

Renewal Inputs

Contracts Up for Renewal

Total subscriptions or contracts that reached renewal date this period.

Contracts Renewed

Customers who chose to renew their contract or subscription.

Average Contract Value (optional)

Average annual or per-period contract value — enables lost revenue estimate.

Enter renewal data on the left to see your metrics.

Renewal Rate

—

Churn Rate

—

= 100% − Renewal Rate

Up for Renewal

—

Renewed

—

Churned

—

Renewal vs. Churn Breakdown

Renewed —

Churned —

Benchmark Bands (B2B SaaS)

Needs improvement < 80%

Acceptable 80–89%

Healthy 90–94%

Best in class ≥ 95%

Summary

Calculate subscription or contract renewal rate, churn rate, and lost revenue from non-renewals in seconds.

How it works

Enter the number of contracts or subscriptions up for renewal in the period.
Enter how many of those actually renewed.
Renewal Rate = (Renewals / Up for Renewal) × 100.
Churn Rate = 100 − Renewal Rate.
Optionally enter average contract value (ACV) to calculate lost revenue from non-renewals.

Use cases

Measure the health of a SaaS subscription business each quarter.
Calculate dollar value of churned contracts to justify retention investment.
Track renewal rate over time as a leading indicator of customer satisfaction.
Present renewal metrics to board or investors alongside ARR and MRR.
Set renewal rate targets for customer success teams.
Compare renewal rates across product tiers or customer segments.

Frequently Asked Questions

Last updated: 2026-07-24 · Reviewed by Nham Vu