Renewal rate formula in Excel or Google Sheets
Put the inputs in column B from row 2, then paste the formulas below. They work the same in Excel and Google Sheets.
| Cell | What | Value or formula | Example |
|---|---|---|---|
| B2 | Contracts up for renewal | 60 | 60 |
| B3 | Contracts renewed | 52 | 52 |
| B4 | ARR up for renewal ($) | 900000 | 900000 |
| B5 | ARR renewed ($) | 810000 | 810000 |
| B7 | Logo renewal rate (%) | =ROUND(B3/B2*100,1) | 86.7 |
| B8 | ARR renewal rate (%) | =ROUND(B5/B4*100,1) | 90 |
| B9 | ARR not renewed ($) | =B4-B5 | 90000 |
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Frequently asked questions
- How do you calculate renewal rate?
- Count the contracts that reached their renewal date in the period and divide the ones that renewed by that total. 52 of 60 is an 86.7% logo renewal rate.
- Should I report logo or revenue renewal rate?
- Both. Logo renewal shows how many customers stay; ARR renewal shows how much money stays. A gap between them tells you whether you lose small or large accounts.
- Do upsells at renewal count?
- Keep them out of the renewal rate, which should never exceed 100%, and report expansion at renewal separately. Otherwise a big upsell can hide lost customers.
- How do I forecast next quarter's renewals?
- Group the ARR up for renewal by account health, multiply each group by the renewal rate that group reached in past quarters, and add the results. $1.2M of healthy accounts at 95% and $300,000 at risk at 40% forecast $1.26M. Check the forecast against the actual renewal rate each quarter.
About the author
Abdessamad Ghanem
Customer Experience & Customer Success Consultant · Founder of Clarivoxx
Abdessamad Ghanem works across Customer Support, Sales, Customer Success, Account Management and Partner Management. He writes Clarivoxx Insights for B2B SaaS professionals who own retention, adoption and customer outcomes.