---
title: "What is Renewal rate? | Chargezen"
description: "The share of subscriptions due to renew in a period that actually renew and get paid."
url: "https://chargezen.com/glossary/renewal-rate"
lang: "en"
---

Canonical URL: https://chargezen.com/glossary/renewal-rate

# Renewal rate

Subscription renewal rate

Retention

The share of subscriptions due to renew in a period that actually renew and get paid.

## What is Renewal rate?

Renewal rate answers a simple question: of the subscribers who were supposed to renew, how many did? It counts paid renewals against renewals that were due. **Look at it by order number.** The overall rate hides the pattern that matters most. The drop from the first order to the second is usually the biggest, and it gets smaller as subscribers settle in. A table of renewal rates for order 2, 3, 4 and onward shows exactly where subscribers leave. **What counts against it:** - **Cancellations** before the renewal. - **Failed payments** that are never recovered. - **Skips,** depending on how you count. Many brands report skips separately, because a skip delays a renewal without losing the subscriber. **Renewal rate vs retention rate.** Retention rate usually tracks customers still active after a set time. Renewal rate tracks billing events, so it reacts faster and points to specific orders. **How to raise it:** - Make the first box great and explain how to use the product. - Send a clear reminder before each charge, with easy skip and swap options. - Recover failed payments with retries and card update links. - Offer a pause or a frequency change when a subscriber tries to cancel. **How Chargezen handles it:** Chargezen Subscriptions analytics report renewal rates for your subscribers, so you can see which orders lose the most people.

## Formula

Renewal rate = Subscriptions renewed and paid ÷ Subscriptions due to renew × 100

## Example

In March, 1,000 subscriptions were due to renew. 870 were charged successfully, 60 were cancelled and 70 failed payment and were not recovered. The renewal rate is 87%.

## Why Renewal rate Matters

Every point of renewal rate compounds over many orders, so small gains early in a subscription add up to big gains in customer lifetime value.

## Explore More Terms

Browse our complete glossary of e-commerce and subscription terms.

[View Full Glossary](https://chargezen.com/glossary)