# Renewal Probability

Customers and Subscriptions

The renewal probability feature from Calqulate improves your revenue forecasting. It quantifies the probability of a customer renewing the subscription. If you are certain that your customer will renew the subscription after it ends, you can set this slider to 100 %. If you are not sure if the customer renews their subscription, you can set it to a smaller percentage, for example, 95 %. When you create or import a new subscription the renewal probability is set to a default value, which is 100 % if you do not change it.

## What is the Renewal Probability?

You have a customer who subscribes to your product in January for a billing period of three months and pays a total of 300 € for 3 months (100 € per month). You are not certain if the customer will renew their subscription. So you set the renewal probability to 90 %.

The MRR statistics show 100 € MRR for the first three months they subscribed. Since you are 90 % sure the customer will subscribe again for three months, MRR statistics show 90 € per month for April-June (100 € * 90 %). For the following three months, July-September, MRR statistics show 90 % of the 90 % which equal to 81 €.

Your Revenue forecast in January will look like this:

Jan. | Feb. | March | April | May | June | July | Aug. | Sept. | Oct. | Nov. | Dec. |

100 | 100 | 100 | 90 | 90 | 90 | 81 | 81 | 81 | 72.9 | 72.9 | 72.9 |

## How to set up a Renewal Probability in Calqulate?

Go to the left-hand menu **CUSTOMERS** > **Subscriptions**. You can now see the list of your subscriptions. Search for the subscription you want to edit and **click** on it.

You can now adjust the renewal probability by **moving** the slider to a value between 1 - 100. It will save automatically when you go back to the main subscription menu.

That’s it! You have now adjusted the renewal probability.

## How to set up a default value for the Renewal Probability?

Go to the left-hand menu **CUSTOMERS** > **Subscriptions**. Click the gear icon next to the Subscriptions headline.

You can now set up individual default values for subscriptions with different periods. You can set default values for:

- Monthly subscriptions
- Annual subscriptions
- Subscriptions with other billing periods

Confirm your changes with **Save**.

That's it. You have now adjusted the default value for the renewal probability of your subscriptions.

Updated about 2 years ago