Renewal Rate
Renewal Rate: The percentage of contracts renewed at term.
Formula
Renewal Rate = Contracts renewed / Contracts up for renewal × 100Renewal Rate = ARR renewed / ARR up for renewal × 100Benchmarks
- Below 85%: Concerning, indicates retention problem
- 85-90%: Below average
- 90-95%: Good (90% is the industry norm per 2025 data)
- 95%+: Excellent, top-quartile performance
Related Metrics
Connected in the GASP relationship graph.
Upstream: what drives this
- Customer Health Score drives Renewal Rate (Customer Success)