85 is the example result. Read it using the units and relationship stated below.
Renewal Rate uses renewed customers, renewal eligible.
Separating growth, retention and subscription capacity
For renewal rate, the relationship is Result = (([Renewed customers]) ÷ ([Renewal eligible])) × 100. The amount depends on the supplied renewed customers, renewal eligible, rather than a live market price or a value imported from another record. Recurring revenue should be compared across the same starting cohort. Expansion, contraction and churn change retention in different directions. Adding new customers to a retained-customer calculation can conceal losses in the original population.
Source and result record
For renewal rate, retain Renewed customers, Renewal eligible together with the output. Record the date of the source values and the unit convention used in the form. That record separates a change in the underlying case from a change in how the information was entered. A saved result without its source values cannot show which assumption produced it.
Example with the supplied inputs
Renewed customers: 85; Renewal eligible: 100. Result: 85. The values are illustrative.
Compare one changed input
Renewed customers changes from 85 to 93.5. The result becomes 93.5. All other inputs remain fixed.
Calculation rule
Result = (([Renewed customers]) ÷ ([Renewal eligible])) × 100
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Renewed customers | 85 | Use the source quantity represented by renewed customers. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Renewal eligible | 100 | Use the source quantity represented by renewal eligible. Keep the counted population fixed and avoid mixing a unit value with a period total. |
Output: 85 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Renewed customers, Renewal eligible. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Renewed customers on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 85.
Change Renewed customers from 85 to 93.5 while keeping every other value fixed. The result becomes 93.5. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026