A renewal quote is a proposal to review, not a reliable summary of everything your existing agreement permits. Before accepting it, compare the price, service scope, quantities, commitment period, and relevant clauses on a consistent basis.
The goal is to identify which differences are explained, which need negotiation, and which may conflict with the agreement. This guide uses hypothetical figures to show the process. It does not establish what a particular vendor is legally entitled to charge.
Gather the documents before calculating
Find the signed order form, master agreement, pricing schedules, and amendments. Add the current invoice and the complete renewal quote, including any linked terms that form part of the proposal.
Identify the document that supports the current price and the terms that will apply at renewal. An old PDF may contain an increase cap that a later amendment changed. An invoice may include one-off charges that should not be used as the recurring baseline.
Keep a source reference for each figure. If you cannot establish a reliable baseline, mark the comparison incomplete and request the missing evidence.
Put both prices on the same basis
Check these dimensions before calculating a percentage increase:
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| Dimension | Current agreement | Renewal quote |
|---|---|---|
| Currency and tax | Record currency and whether tax is included | Use the same treatment |
| Billing and commitment | Distinguish instalments from contract length | Check both separately |
| Quantity | Seats, transactions, storage, or other units | Identify increases and reductions |
| Service scope | Package, support, integrations, and add-ons | Identify additions and removals |
| Recurring price | Separate one-off fees and credits | Identify recurring and temporary amounts |
| Renewal terms | Increase provision and discount conditions | Identify proposed changes |
Annualising a monthly charge can help comparison, but it does not change the contractual commitment. Likewise, converting currencies introduces exchange-rate assumptions that should be recorded.
Calculate the headline increase
For a same-scope comparison, subtract the current annual price from the quoted annual price, divide by the current price, and multiply by 100.
In this example, the current annual price is $20,000 and the quote is $27,500. The difference is $7,500, or 37.5%. That tells you the size of the change, but not why it occurred or whether it is permitted.
If the current baseline is zero, this percentage calculation is not meaningful. If quantities changed, compare unit prices and total prices separately before describing the entire difference as a price increase.
Apply a verified cap to the correct base
Suppose the relevant clause clearly limits the annual increase on the same services to 5%, with no applicable exception or amendment. On the illustrative $20,000 base, the calculated amount is $21,000.
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| Item | Illustrative amount |
|---|---|
| Current annual price | $20,000 |
| Renewal quote | $27,500 |
| Price using the assumed 5% cap | $21,000 |
| Difference requiring explanation | $6,500 |
The $6,500 is an identified difference to investigate, not realised savings. Confirm that the cap applies to the proposed renewal, including its quantities, term, and services. See the annual price increase clause guide for cases involving compounding, discount expiry, and changing scope.
Separate price changes from quantity changes
Imagine the original agreement covers 100 seats at $200 per year. The renewal includes 120 seats at $210 per year. The total becomes $25,200, a 26% increase, even though the unit price increased by 5%.
The next question is whether the additional twenty seats are required and how the applicable contract provisions treat them. Challenging the entire 26% as an excessive unit-price increase would miss the actual drivers.
Ask the supplier to itemise the quote and ask the business owner to confirm requirements. Do not count removable seats as available savings until you have checked minimum commitments and reduction rights.
Check timing before starting the conversation
Find the notice deadline and the requirements for delivery. A commercial discussion does not necessarily pause contractual deadlines. Set an internal decision date that leaves enough time for review and any required action.
Use the notice deadline calculation guide and the negotiation checklist to organise the next steps.
Respond with a specific question or request
Your message should identify the quote, the current baseline, the relevant provision, and the requested clarification. Ask for a revised itemised quote when appropriate. Avoid asserting a breach if you have not resolved amendments or exceptions.
The vendor price increase email guide includes adaptable wording. Once an outcome is agreed, use the realised savings method to document what changed.
Renewly's Quote Analyzer can help compare your agreement and renewal quote. Treat its findings as inputs to a review, verify the source evidence, and retain the final decision in your renewal register.