SaaS Metric
Renewal Rate
Definition
Renewal rate is the percentage of contracts (or revenue) up for renewal in a period that actually renew. Renewal rate = contracts renewed ÷ contracts up for renewal × 100. Unlike churn, which is measured against the whole base, renewal rate is measured only against the cohort whose contracts came due — which makes it the cleanest signal for annual or multi-year subscriptions.
Formula
Logo renewal rate = contracts renewed ÷ contracts up for renewal × 100 Gross dollar renewal rate = renewed contract value ÷ contract value up for renewal × 100
Benchmark
Healthy B2B annual gross renewal rates run roughly 85–95%; enterprise contracts higher. Read it against the renewing cohort, not the full base.
Renewal rate vs. retention rate
The key difference is the denominator. Retention and churn are usually measured against the entire customer base over a period. Renewal rate is measured only against the subset whose contracts actually came up for renewal in that window. For a product sold on annual contracts, renewal rate is the sharper instrument because it isolates the renewal decision rather than blending it with mid-term behaviour.
You can express renewal rate by logo (share of contracts renewed) or by dollar (share of renewing contract value retained). The dollar version is closer to gross revenue retention but scoped to the renewing cohort, so the two should be read as complementary, not interchangeable.
Frequently asked questions
How do you calculate renewal rate?
Divide the number of contracts that renewed by the number of contracts that were up for renewal in the period, as a percentage. A dollar-based version divides renewed contract value by the contract value that was up for renewal.
What is the difference between renewal rate and retention rate?
Renewal rate is measured only against contracts that came due for renewal in the period; retention rate is measured against the whole customer base. For annual-contract products, renewal rate isolates the renewal decision more cleanly.
What is a good renewal rate?
Healthy B2B annual gross renewal rates typically sit around 85–95%, with enterprise contracts higher because of switching costs and multi-year terms.
Related metrics
Gross Revenue Retention (GRR)
Gross revenue retention (GRR) measures the recurring revenue you keep from existing customers excluding expansion. Learn the GRR formula, benchmarks, and how it differs from NRR.
Net Revenue Retention (NRR)
Net revenue retention (NRR) measures recurring revenue kept from existing customers including expansion. Learn the NRR formula, what 100%+ means, and SaaS benchmarks.
Logo Retention Rate (Logo Retention)
Logo retention is the percentage of customers (logos) you keep over a period, regardless of their size. Learn the formula, how it differs from revenue retention, and benchmarks.
Churn Rate
Churn rate is the percentage of customers or revenue lost in a period. Learn the customer churn and revenue churn formulas, healthy SaaS benchmarks, and how to reduce it.
Track this automatically
Connect Stripe and RetentionLens computes Renewal Rate for you — with cohorts, trends and churn-risk scoring. Start on the free tier.
Benchmarks are general SaaS ranges and vary by segment, stage and business model. Last reviewed 2026-05-30.