Renewal Rate Calculator

The Renewal Rate Calculator shows what share of the contracts that came up for renewal actually renewed in a period, expressed as a clean percentage. You enter the number due for renewal and the number that renewed, and the tool divides one by the other to give your renewal rate, along with the count that lapsed so you can see exactly what was lost. You can run it by customer count or by contract value, just keep both inputs in the same unit. Finance teams, customer success leaders and founders rely on this metric because renewals are the foundation of recurring revenue, and a strong renewal rate means the base you have built keeps paying year after year rather than draining away. It is a direct read on whether customers see ongoing value, and small swings compound heavily over time, so a few points of improvement can change your whole growth trajectory. To keep the figure meaningful, fix a consistent renewal window, decide whether you are measuring by count or by value and stick to it, and count only contracts genuinely up for renewal in the period rather than the whole base. It pays to track renewal rate alongside downgrade and upsell rates, since a contract can renew at a lower value and still count, so value based renewal tells a fuller story than a simple count. Watch the rate by segment and cohort to find where loyalty is strong and where it slips. Used consistently, this calculator turns renewals from an anxious annual scramble into a tracked metric you can forecast against, report with confidence, and lift through earlier engagement, clear value reviews and well timed renewal conversations.

85.0%
Renewal rate
Lapsed30

Renewal rate = renewed / up for renewal. Estimate only, not financial or tax advice.

How it works

The tool divides the number of contracts that renewed by the number that were up for renewal and multiplies by 100 for a percentage. The lapsed figure is those up for renewal minus those renewed. You can use customer counts or contract values as long as both inputs match.

Worked example

With 170 contracts renewed out of 200 up for renewal, the rate is 170 divided by 200, which is 0.85 or 85.0 percent. The number that lapsed is 200 minus 170, which is 30 contracts.

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