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.
- 3-5%
- good SMB monthly churn — IdeaProof Research 2026
- <1%
- enterprise monthly churn — IdeaProof Research 2026
- 120%+
- excellent NRR — IdeaProof Research 2026
- 30-50%
- churn reduction from annual — IdeaProof Research 2026
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 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
Recommended Tools & Resources
Your Next Steps
Sources & Citations
- [1]IdeaProof Research 2026
Cite this page
IdeaProof. (2026). What is a Good Churn Rate for SaaS?. IdeaProof. Retrieved from https://ideaproof.io/questions/good-churn-rateLast verified: