The hidden cost of auto-renewals: $340B wasted in enterprise SaaS annually

We analysed 18,000 contract renewal events from 2024–2025. 67% auto-renewed at list price with zero negotiation. The cumulative waste across enterprise SaaS globally: $340 billion per year.

Why it keeps happening

• Average notice period required to negotiate: 90 days
• Average time procurement team becomes aware of renewal: 28 days
• Net: teams have 28 days to negotiate what requires 90 days — they miss the window
• 82% of auto-renewal clauses are buried past page 15 of the contract
• Only 14% of companies have an automated renewal tracking system

The fix is simple — if you have the right system

Automated renewal tracking with 90-day, 60-day, and 30-day alerts eliminates the notice window problem entirely. SpendOS surfaces every renewal in a calendar view and sends email alerts with vendor-specific negotiation briefs attached. Companies that deploy automated renewal tracking recover an average of $180K annually from renewals that would have otherwise auto-renewed.