Most published SaaS churn figures cannot be compared with each other, because they measure different things. One source reports 38% annual churn and another 3.9% monthly, and these are the same number. Before any benchmark is useful you have to match three variables. This page covers how to read churn data correctly, what the current benchmarks actually are by segment and stage, and two findings that contradict how most SaaS teams think about retention.
Why Churn Benchmarks Disagree
This section matters more than the numbers, because comparing mismatched figures produces worse decisions than having no benchmark at all.
Match Three Things Before Comparing
(cite index=”31-1″>Before comparing two churn figures, match whether they measure customers or revenue, the period they cover, and whether payment failures are included.</cite>
The Same Number Looks Ten Times Different
(cite index=”31-1″>Stripe’s industry figures are annual churn on monthly-billed subscriptions only, so 38% annual is about 3.9% monthly, which is in line with the monthly rates other panels publish rather than ten times higher.</cite>
Logo Churn Versus Revenue Churn
Losing customers and losing revenue are different measures that diverge sharply when expansion revenue is present. Always state which you are reporting.
Why This Matters Commercially
(cite index=”27-1″>Buyers who discover inconsistent metrics in diligence will question everything else in your data room.</cite> Our SaaS development engagements define metrics before instrumenting them.
Current Churn and Retention Benchmarks
With the definitional caveat applied, these are the figures worth measuring against, segmented by who you sell to.
Median Monthly Churn
(cite index=”25-1″>The 2026 median monthly B2B SaaS churn rate is about 3.5%, ranging from under 1% for best-in-class enterprise products to 9.6% in EdTech.</cite>
Healthy Ranges by Segment
(cite index=”25-1″>Healthy monthly logo churn runs under 0.5% for enterprise, 0.5 to 1.5% for mid-market, and 2 to 4% for SMB and prosumer products, with best-in-class companies holding revenue churn below 1%.</cite>
Net Revenue Retention
(cite index=”25-1″>Median B2B SaaS net revenue retention is 82%, with elite companies clearing 120 to 130% and above.</cite>
Churn by Company Stage
(cite index=”30-1″>Early-stage companies under $300K ARR average 6.5% monthly customer churn, growth stage at $1M to $3M ARR average 3.7%, scale stage above $8M ARR average 3.1%, and companies above $15M ARR average 1.8% net MRR churn.</cite>
Why Stage Context Matters
High early churn is expected while product-market fit is still forming. Our MVP development work treats early churn as information rather than failure.
Price Point Beats Industry as a Predictor
This is the finding most likely to change how you benchmark, and it contradicts the standard practice of comparing against industry peers.
The Spread Is Wider by Price Than by Sector
(cite index=”31-1″>Across ten industries the churn spread is 15 points, from 28% to 43%. Across order value it is 25 points, from 40% under $10 to 15% above $10,000.</cite>
The Same Pattern on Another Panel
(cite index=”31-1″>Top-quartile annual customer retention runs 64.7% for companies under $25 average revenue per account against 85.8% for those above $1,000.</cite>
Annual Billing Helps Most at the Bottom
(cite index=”31-1″>Under $25 ARPA, annual plans retained 62% against 41% for monthly. Above $100 ARPA the gap narrows to roughly ten points.</cite>
Involuntary Churn Is Not Only a Small-Business Problem
(cite index=”31-1″>Its share of total churn runs 35% under $10 order value, falls to 15% in the middle, and rises again to 24% above $10,000.</cite> Recovering failed payments is a direct revenue lever.
AI-Native SaaS Has a Retention Problem
The newest finding in the retention data, and one that should temper enthusiasm about AI-native product economics.
The Headline Gap
(cite index=”30-1″>Per ChartMogul’s SaaS Retention Report, AI-native companies show 40% gross revenue retention and 48% net revenue retention overall, far worse than the B2B SaaS median of 82% NRR.</cite>
Price Level Explains Most of It
(cite index=”30-1″>Premium AI tools above $250 per month show 70% GRR and 85% NRR, matching traditional B2B SaaS. Budget AI tools below $50 per month show 23% GRR and 32% NRR.</cite>
The AI Tourist Effect
(cite index=”30-1″>Users signing up out of curiosity and quickly churning hit the budget segment hardest.</cite>
It Is Improving
(cite index=”30-1″>Median gross revenue retention for AI-native SaaS rose from 27% in January 2025 to 40% by September 2025, suggesting that as curious users churn out the remaining base is becoming more committed.</cite>
What This Means for Product Strategy
Low-priced AI products face a structural retention problem rather than an execution one. Our AI and automation work treats commitment level as a product design decision.
Buying Behaviour and Valuation Data
Two further datasets worth knowing, covering what organisations actually spend and how retention affects what a business is worth.
Portfolio Size Has Stabilised
(cite index=”28-1″>Zylo’s 2026 index reports the average portfolio remained at 305 applications with total app counts declining slightly by 0.07%, while average SaaS spending increased 8% year over year.</cite>
Spending Pressure Is From Pricing, Not Volume
(cite index=”28-1″>That combination suggests spending pressure is increasingly coming from how software is priced, packaged, expanded, and consumed rather than from companies adding more applications.</cite>
AI Spending Growth
(cite index=”28-1″>Spending on AI-native applications increased 108% year over year, rising to 393% among large enterprises, with usage across the broader AI application category growing 181%.</cite>
Retention Drives Valuation
(cite index=”25-1″>Companies with net revenue retention above 130% trade at 15 to 20 times forward revenue, those below 100% at just 3 to 5 times.</cite> Our dashboard development work makes these metrics visible continuously.
FAQs
What is a good SaaS churn rate?
The 2026 median monthly B2B SaaS churn is about 3.5%. Healthy monthly logo churn runs under 0.5% for enterprise, 0.5 to 1.5% for mid-market, and 2 to 4% for SMB and prosumer products. Best-in-class companies hold revenue churn below 1%.
Why do published churn benchmarks disagree so much?
Because they measure different things. Match three variables before comparing: customers or revenue, the time period, and whether failed payments are included. Stripe’s 38% annual figure and a 3.9% monthly figure describe the same rate.
What is a good net revenue retention rate?
Median B2B SaaS NRR is 82%, with elite companies clearing 120 to 130% and above. It matters commercially as well as operationally, since companies above 130% trade at 15 to 20 times forward revenue against 3 to 5 times below 100%.
Does industry or price point affect churn more?
Price point, substantially. The churn spread across ten industries is 15 points, while across order value it is 25 points. Benchmarking against companies at a similar price level is more informative than benchmarking against your sector.
Why do AI-native SaaS products churn so heavily?
Largely price level. AI-native companies show 40% gross revenue retention overall, but premium tools above $250 monthly reach 70%, matching traditional SaaS, while tools below $50 monthly sit at 23%. Low commitment attracts curious users who leave quickly.
Does annual billing reduce churn?
Considerably at low price points and marginally at high ones. Under $25 average revenue per account, annual plans retained 62% against 41% for monthly. Above $100 the gap narrows to about ten points.
