Is my churn rate good?
The honest answer: it depends entirely on your segment and stage. A 5% monthly churn that's normal for a self-serve SMB tool would be a five-alarm fire for an enterprise product. Below are the 2026 benchmarks, and a way to see exactly where your number lands against peers.
By Mark Ashworth, Founder of ChurnTools · Last updated 24 July 2026
The short answer
A good monthly churn rate is under 3% for B2B SaaS, under 5% for B2C SaaS, and under 1.5% for enterprise. Best-in-class B2B runs under 1%. The all-SaaS median is about 4.7% monthly.
- → B2B SaaS: under 3% monthly is good, under 1% is best-in-class. Median is 3.9%.
- → B2C / subscription apps: under 5% monthly is good. Median is 6.7%.
- → Enterprise: above 1.5% monthly is a warning sign. Best teams sit under 1%.
- → Stage matters as much as segment: the same rate reads very differently at $500K ARR vs $20M ARR.
- → Don't trust your blended number. New-cohort churn and involuntary (failed-payment) churn hide inside it. The Churn Health Check pulls them apart.
Where does your churn actually rank?
Enter your number. This computes your percentile against peers in your segment, the same way the full Retention Rank tool does.
Your rank
50th percentile
Right around the median for your segment.
Median peer
4.9%/mo
Want to save this, track it monthly, and get a badge? Do it in the full tool.
Rank & track my churn →Where this percentile comes from
The tool models each segment's churn as a log-normal distribution (churn can't go negative and has a long right tail of struggling companies) anchored to the published median for your type and size. Your percentile is the share of peers who churn more than you. So "78th percentile" means your churn is lower than 78% of comparable SaaS companies. As real founders submit their numbers, the tool blends that live data in, so the benchmark sharpens over time.
The 2026 monthly churn bands, at a glance
Where "good", "average", and "at risk" fall for monthly logo churn, by segment.
Bands are monthly logo churn. Sources aggregated from ChartMogul, Baremetrics, OpenView and SaaS Capital benchmarks plus ChurnTools submissions. See full benchmarks.
What is a good churn rate for SaaS overall?
Across all SaaS, median monthly logo churn is about 4.7%. So if you are under 3% you are comfortably better than most, and under 1% puts you in rare company. But "all SaaS" is a useless benchmark to compare yourself against, because a consumer meditation app and a $200K-ACV security platform live in completely different worlds. The number only means something once you narrow it to your segment.
| Segment | Median monthly | "Good" | Best-in-class |
|---|---|---|---|
| B2B SaaS | 3.9% | < 3% | < 1% |
| B2C SaaS | 6.7% | < 5% | < 3% |
| Subscription eCommerce | 6.5% | < 5% | < 3% |
| Enterprise (annual) | 1.4% | < 1.5% | < 0.7% |
What is a good churn rate for B2B SaaS?
For B2B SaaS, aim for under 3% monthly logo churn. The median is 3.9%, best-in-class teams run under 1%, and anything above 6% monthly means the bucket is leaking faster than most acquisition engines can fill it. B2B churn is lower than B2C because contracts, team adoption, and workflow integration all raise switching costs. If your B2B churn looks more like a B2C number, the usual culprits are weak onboarding (customers never activated) or heavy involuntary churn from failed payments.
"5% monthly churn compounds to roughly 46% of your customers gone in a year. You can't out-market a leak that size."
What is a good churn rate for B2C SaaS and subscription apps?
For B2C, under 5% monthly is good and the median sits at 6.7%. Consumer churn runs higher for structural reasons: lower price points mean less commitment, buying decisions are emotional, and there is rarely a contract or a customer success manager holding the relationship together. The lever that moves B2C churn most is early habit formation. If a consumer doesn't build the app into a weekly routine in the first two weeks, they churn, and no win-back email fixes it after the fact.
What is a good churn rate by company size?
Deal size changes everything. The same product sold to enterprises churns far less than sold self-serve to SMBs, because bigger contracts carry more commitment, more integration, and more people whose jobs depend on the tool.
| Company size | Typical monthly churn | What "good" looks like |
|---|---|---|
| SMB ($500-5k ACV) | 4-6% | Under 4% monthly |
| Mid-market ($5k-50k) | 2-4% | Under 2% monthly |
| Enterprise ($50k+) | 0.5-1.5% | Under 1% monthly |
See the full breakdown on the churn rate by company size page.
What is a good churn rate by industry?
Industry is one of the biggest determinants of churn. Regulated, high-switching-cost categories retain better; consumer-facing, easy-to-swap categories churn more. Representative 2026 medians:
| Industry | Median monthly churn | Why |
|---|---|---|
| Cybersecurity / Infra | 2.9% | High switching cost and compliance lock-in keep churn low. |
| Fintech | 3.2% | Money movement and integrations create stickiness. |
| Healthtech | 3.8% | Regulated workflows are hard to rip out. |
| B2B SaaS (overall) | 3.9% | The broad B2B baseline. |
| Martech | 5.6% | Crowded category, easy to swap tools. |
| B2C SaaS (overall) | 6.7% | Individual buyers, low commitment. |
| Edtech | 7.8% | Seasonal use and fickle consumers. |
The full industry-by-industry table lives on the churn rate by industry page.
Monthly vs annual churn: which should you benchmark?
Both are used, and mixing them up is the most common benchmarking mistake. Retention compounds, so you can't just multiply monthly by twelve. 5% monthly churn is about 46% annual churn, not 60%, because each month you're losing 5% of a shrinking base. If a benchmark doesn't say monthly or annual, assume monthly for SaaS logo churn and annual for enterprise contracts, and convert before you compare. The churn rate calculator handles the conversion for you.
"If a benchmark doesn't state monthly or annual, it's not a benchmark. It's a number with no units."
Why your churn rate might look fine but isn't
Here's the opinion most benchmark posts won't give you: your headline churn number is probably lying to you, and in a comforting direction. Three ways it hides trouble:
- 1. Blended churn hides your worst cohort. A 3% average can be 1% from loyal old customers and 8% from everyone who signed up last quarter. New-cohort churn is what actually caps your growth.
- 2. Involuntary churn gets counted as "they left". Failed payments and expired cards are 20-40% of most SaaS churn. Those customers didn't decide to leave, their card did, and that's the cheapest churn to recover with smart dunning.
- 3. Logo churn hides revenue churn. Lose one whale and your customer-count churn barely moves while revenue churn spikes. If you sell varied plan sizes, track net revenue retention alongside logo churn.
The fastest way to see which of these is dragging you down is the 2-minute Churn Health Check, which scores your setup across measurement, dunning, activation, and five other retention systems.
Stop guessing. See your exact rank.
Benchmarks tell you the average. The Retention Rank tool tells you your percentile against peers your size, in dollars, in 10 seconds.
Rank my churn rate →Frequently asked questions
What is a good monthly churn rate for SaaS?
For B2B SaaS, a good monthly churn rate is under 3%, and best-in-class is under 1%. For B2C SaaS and subscription apps, under 5% is good. For enterprise SaaS on annual contracts, anything above 1.5% monthly is a warning sign. The median across all SaaS is about 4.7% monthly, so if you are under 3% you are already ahead of most companies.
Is 5% monthly churn good or bad?
5% monthly churn is roughly average for a self-serve SMB SaaS and perfectly survivable there. The same 5% is a serious problem for a mid-market or enterprise product, where good looks like 1-3%. 5% monthly also compounds to about 46% of your customers gone in a year, so even for SMB it caps how fast you can grow. Context is everything: benchmark against your segment, not the global average.
What is a good annual churn rate?
A good annual logo churn rate is under 15% for B2B SaaS and under 25% for B2C. Enterprise SaaS often runs 5-10% annual. Watch the conversion trap: 5% monthly churn is about 46% annual churn, not 60%, because retention compounds. Always confirm whether a benchmark is monthly or annual before comparing yourself to it.
Why does my churn rate look fine but my growth is stalling?
Usually because your blended churn hides the real number. A healthy-looking 3% blended rate can mask 8% churn in your newest cohort and 1% in your oldest. New-customer churn is what caps growth, not the average. Split churn by cohort, and separate voluntary (they chose to leave) from involuntary (failed payments), which is 20-40% of most SaaS churn and the easiest to fix.
Should I measure customer churn or revenue churn?
Both, and they tell different stories. Customer (logo) churn counts accounts lost. Revenue churn counts MRR lost and is weighted by account size, so losing one big account can spike revenue churn while logo churn barely moves. If you sell a range of plan sizes, revenue churn (and net revenue retention) is the number investors care most about. If your accounts are similar in size, logo churn is a fine proxy.
What churn rate do investors expect?
For a Series A B2B SaaS, most investors want to see gross revenue churn under about 2% monthly (roughly 20% annual) and net revenue retention above 100%. Enterprise-focused companies are held to a higher bar, often 90%+ gross annual retention. Below those, the concern is that you are filling a leaky bucket and every new dollar of acquisition is partly wasted.
How is a good churn rate different for product-led SaaS?
Product-led SaaS concentrates churn early: 60-70% of it happens in the first 30 days, before a habit forms. So a PLG team can have great long-term retention and still show high blended churn from trial and free-tier drop-off. Judge PLG retention by activation rate and by the shape of the retention curve after day 30, not by the headline monthly number alone.
Mark Ashworth
Founder of ChurnTools. I write about retention, growth loops, and answer-engine optimization at growthpigeon.com. These benchmarks come from public sources plus the numbers real founders submit through ChurnTools.
Benchmark sources
ChartMogul SaaS Retention Report, Baremetrics, OpenView SaaS Benchmarks, SaaS Capital Research, Klipfolio, Recurly Research, Paddle / ProfitWell. More at the ChurnTools benchmarks page and the 2026 State of SaaS Churn report.