How to Calculate Dollar-Based Renewal Rate

How to Calculate Dollar-Based Renewal Rate
September 18, 2018
Dollar-based renewal rate measures the percentage of renewal revenue won out of the total amount of revenue that was up for renewal in a period.

Dollar-based renewal rate measures the percentage of renewal revenue won out of the total amount of revenue that was up for renewal in a period.  To measure dollar-based renewal rate, you take the total amount of renewal revenue won in a given period, and divide by the amount of revenue that expired in that same period.  

For example, if you had $140,000 of renewal bookings in Q2, and $150,000 of revenue that was up for renewal in Q2, then your dollar-based renewal rate would be $140,000 / $150,000 = 93%.

To measure dollar-based renewal rate with Salesforce data,

first sum the amount from closed won opportunities with a type of “renewal” with a close date in the period you are measuring.  Then sum the amount from opportunities that had a subscription end date in that same period. Then divide the closed won renewal amount by expired amount.

To measure dollar-based renewal rate with HubSpot CRM data,

first sum the amount from closed won deals with a type of “renewal” with a close date in the period you are measuring.  Then sum the amount from deals that had a subscription end date in that same period. Then divide the closed won amount by expired amount.

Sales scorecards can calculate dollar-based renewal rate automatically,

and can measure it by sales rep, by account, industry, or any other breakdown.  Check out our sales scorecards solution to learn how they calculate dollar-based renewal rate automatically.

Looking for more sales metrics know-how? Our comprehensive Sales Metrics Glossary will show you how to calculate 30 critical KPIs using CRM data.