SaaS Churn Rate Benchmarks — What Is Good Monthly Churn?

~1 min read

Churn benchmarks vary significantly by customer segment, price point, and market. A 3% monthly churn rate is devastating for enterprise SaaS but potentially acceptable for a low-cost self-serve product. Here are the key benchmarks.

Monthly churn benchmarks by segment

Segment Excellent Good Acceptable Concerning
SMB (<$500 ACV) <1.5% 1.5–3% 3–5% >5%
Mid-market ($500–5k ACV) <0.75% 0.75–1.5% 1.5–3% >3%
Enterprise (>$5k ACV) <0.25% 0.25–0.75% 0.75–1.5% >1.5%
Consumer / B2C <3% 3–7% 7–12% >12%

Annual vs monthly churn conversion

Annual churn ≠ monthly churn × 12 due to compounding:

Monthly Churn Annual Churn (compounded)
0.5% 5.8%
1.0% 11.4%
2.0% 21.5%
3.0% 30.7%
5.0% 46.0%

Net revenue retention benchmarks

NRR combines churn, downgrades, and expansions. Top-quartile SaaS: - PLG/self-serve: 100–115% NRR - Mid-market: 110–125% NRR - Enterprise: 115–130%+ NRR

Use our Churn Impact Calculator to model how changes in your churn rate affect MRR over 12 and 24 months.

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