What is a good SaaS churn rate?
Good monthly logo churn is under 1% for enterprise SaaS, 2–3% for mid-market, and 3–5% for self-serve SMB products. Net revenue retention above 100% matters more than raw churn, because expansion revenue can offset departures entirely.
Churn and retention benchmarks by segment (2026)
| Segment | Monthly logo churn | Good NRR |
|---|---|---|
| Enterprise | 0.4–1.0% | 115–130% |
| Mid-market | 1.5–3.0% | 105–120% |
| SMB self-serve | 3.0–5.0% | 95–110% |
| Prosumer / consumer | 5.0–8.0% | 80–100% |
| Annual contracts | 10–20% yearly | Measured per renewal |
How to read this table
- Annual contracts sits at the top of the table (10–20% yearly) — measured per renewal. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
- Enterprise anchors the bottom (0.4–1.0%) — 115–130%. Treat this as the conservative case you should still be profitable at.
- The gap between the top and bottom row is roughly 50×. That spread is why a single blended average is close to useless here — pick the row that matches your setup instead of averaging the column.
- Most rows are ranges, not single figures. The low end usually reflects a weaker month, a softer audience geography, or an unoptimised setup; the high end reflects a well-run, well-targeted operation of the same size.
- With 5 reference points in the "churn and retention benchmarks by segment (2026)" table, the fastest way to use this page is to find the closest row, take its monthly logo churn, then stress-test it ±30% before you build a plan on it.
Context
Churn compounds against you: 5% monthly churn means losing roughly 46% of a cohort within a year, so acquisition has to run at double speed simply to hold flat. That is why churn work usually returns more than acquisition work at the same spend — fixing onboarding often lifts retention more cheaply than buying replacement customers.
What moves this number
Segment
Self-serve, SMB, mid-market, and enterprise SaaS have materially different benchmark ranges. Compare within your segment only.
Contract length and billing terms
Annual prepay changes retention, cash flow, and payback maths against the same monthly price point.
Growth stage
Early-stage numbers are noisy on small denominators; benchmarks stabilise past roughly $1M ARR.
Definition drift
Half of all benchmark disagreements are definitional — whether churn is logo or revenue, gross or net, monthly or annualised.
Methodology
Ranges reflect widely reported 2026 SaaS operating benchmarks by segment. Logo churn counts departing accounts; NRR includes expansion, contraction, and churn on the existing base.
Assumptions and caveats
- Benchmarks are self-reported and skew toward companies willing to publish good numbers.
- Compare within your segment and stage; cross-segment comparisons mislead.
- This page was last reviewed on 2026-08-12. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
- Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.
Frequently asked questions
What is a good SaaS churn rate?
Good monthly logo churn is under 1% for enterprise SaaS, 2–3% for mid-market, and 3–5% for self-serve SMB products. Net revenue retention above 100% matters more than raw churn, because expansion revenue can offset departures entirely.
Which option pays the most in the churn and retention benchmarks by segment (2026) table?
Annual contracts, at 10–20% yearly (Measured per renewal). That row represents the strongest case in this dataset, so use it as an upper bound rather than an expectation.
What is a realistic low-end figure?
Enterprise at 0.4–1.0% (115–130%). Plan your costs so the low end still works, then treat anything above it as upside.
Why do the numbers vary so much?
The spread between the highest and lowest row is about 50×. Segment and contract length and billing terms explain most of that gap — see the drivers section above for the full list.
Where do these numbers come from?
Ranges reflect widely reported 2026 SaaS operating benchmarks by segment. Logo churn counts departing accounts; NRR includes expansion, contraction, and churn on the existing base.
How can I estimate my own number instead of using a benchmark?
Use the LTV:CAC Calculator on RevenueLab — it takes your own inputs and returns a figure specific to your setup, which is always more accurate than a published range.
Model your own numbers
Related reading
More answers in this category
- What is a good LTV:CAC ratio for a SaaS business?
- What is a good CAC payback period for SaaS?
- What is a good LTV to CAC ratio?
Last updated 2026-08-12.