Definition
What renewal rate measures
Renewal rate is the percentage of active subscriptions that renew when their term ends, rather than cancelling. It is the direct complement of churn: a 83% renewal rate is a 17% churn rate for that period. It is measured per billing cycle, so an annual renewal rate and a monthly renewal rate are not comparable numbers.
Annual versus monthly
Annual plans renew at a much higher rate than monthly plans. In RevenueCat's 2026 data the annual renewal rate sits around 83%, roughly double the monthly rate and several times the weekly rate, because an annual subscriber has made a larger, more considered commitment. The catch is on the other side: once an annual subscriber does lapse, they very rarely come back, so a healthy renewal rate has to be paired with a low reactivation rate to understand the full picture.
Why pricing affects it
Renewal is a re-decision, and price is part of it. A subscription that felt fair at signup can feel wrong at renewal if the price never fit the market to begin with, or if it drifted as currencies moved. Keeping localized prices aligned to local purchasing power supports renewal in every market, not just the home one.
Examples
Example
An app has 1,000 annual subscribers coming up for renewal. If 830 renew, the annual renewal rate is 83%. The 170 who lapse are, statistically, unlikely to return within the year, so the app's growth depends on both keeping that renewal rate high and acquiring new subscribers to replace the lapse.
Frequently asked
What is a good subscription renewal rate?
It depends on the billing period. In RevenueCat's 2026 data, annual plans renew at around 83%, roughly double monthly plans. Compare your renewal rate to the same billing period, since annual and monthly rates are not directly comparable.
What is the difference between renewal rate and retention?
Renewal rate is the share of subscriptions that renew at the end of a specific billing period. Retention is broader, tracking how many users remain active over time. Renewal rate is the per-cycle version of that idea and is the direct complement of churn.
Why do annual plans renew better than monthly?
Annual subscribers made a larger upfront commitment and have fewer decision points to cancel, so a higher share renew. But lapsed annual subscribers rarely return, so a high renewal rate should be read alongside a low reactivation rate.
Further reading
- Subscription vs One-Time vs Hybrid: What Each Does to Your App RevenueSubscription, one-time, or both? A 2026 look at what each model does to your revenue over time, with the churn, reactivation, and commission math.
- How Much Money Do Subscription Apps Actually Make?How much money do subscription apps make? The real 2026 benchmarks, what separates the winners, and the revenue lever most founders never touch.
- How to Raise Your App's Subscription Price Without Losing SubscribersHow to raise your app's subscription price without losing subscribers: grandfathering, Apple's silent-notice thresholds, and Google Play's accept-or-cancel.