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Good monthly churn rates for SaaS: SMB (3-5%), Mid-market (2-3%), Enterprise (<1%). Annual churn benchmarks: SMB (30-50%), Mid-market (15-25%), Enterprise (5-10%). Best-in-class SaaS achieves negative net churn—expansion revenue exceeds losses. Early-stage churn is typically higher (7-10%+) and improves with product-market fit. Focus on net revenue retention (NRR): 100%+ is good, 120%+ is excellent.
Key Good Churn Rate Takeaways
- SMB SaaS: 3-5% monthly, 30-50% annual
- Mid-market: 2-3% monthly, 15-25% annual
- Enterprise: <1% monthly, 5-10% annual
- Best-in-class: negative net churn
- Target 100%+ net revenue retention
- Excellent NRR: 120%+
- Early-stage: expect 7-10%+ churn
- Annual contracts reduce churn 30-50%
Good Churn Rate Statistics
3-5%
good SMB monthly churn
<1%
enterprise monthly churn
120%+
excellent NRR
30-50%
churn reduction from annual
Good Churn Rate FAQ
Expert Tips
Move to annual contracts
Reduces churn 30-50% and improves cash flow
Focus on activation
Most churn happens before customers see value
Segment your churn data
SMB and enterprise churn have different causes