How to Calculate Dollar-Based Renewal Rate
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.
Rekener can calculate dollar-based renewal rate automatically,
and can measure it by sales rep, by account, industry, or any other breakdown. Check out our Customer Success Analytics app to see how Rekener calculates dollar-based renewal rate automatically.
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Greg is COO and Co-Founder at Rekener. Greg’s career has been focused on using data to grow recurring revenue businesses. Before joining Rekener, he served as VP of Operations at ZeroTurnaround, where he built its strategy and operations practice, ran customer success and renewals, helped to grow and coach its high-velocity sales organization, and optimize its marketing efforts. Prior to that, he ran the BizOps and marketing functions for the AVOKE call center analytics business, a SaaS company within BBN Technologies. He got his start using data to improve sales and marketing efforts while at AppNeta. Greg is also a member of the Revenue Collective.
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