Glossary > Renewal Rate

Renewal Rate

Renewal rate refers to the percentage of customers who renew their subscriptions at the end of their term. It’s a key SaaS metric for measuring customer satisfaction and retention.

The higher the renewal rate, the better. If the renewal rate is high, it means customers keep coming back to the product or service because they are getting value out of it. A low renewal rate, on the other hand, means that customers are not satisfied with the product or service and will likely look elsewhere in the future.

Renwal Rate = Total number of renewals / Total number of customers at end of contract period

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