What is the Renewal Rate?
The renewal rate tracks churn and retention down to the month of invoicing. Rather than track churn and renewals against your total customer count, you track renewals based on each cohort of monthly invoices.
For example, if I email one hundred invoices for Mar-XX renewals, I track who paid their invoice and who churned against the Mar-XX renewals, not against my total customer count.
Renewal Rate Formula
Download
Download the SaaS Renewal Rate slides below.
Additional Resources
How to Calculate the Renewal Rate at The SaaS CFO