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.