Formula
Contracts renewed / Contracts up for renewal x 100
How to measure
Divide the count of contracts that renewed by the total count of contracts that reached their renewal date in the same period.
Why track it
Renewal rate is often the cleanest retention signal for contract-based businesses, since it reflects an explicit repurchase decision.
Example
Of 60 annual contracts up for renewal this quarter, 51 renew, an 85% renewal rate.