SaaS Churn Rate Benchmarks
Churn compounds more brutally than any other startup metric. At 5% monthly churn you lose 46% of your customers in a year; at 3% you lose 31%; at 1% only 11%. That is why a two-point improvement in monthly churn can nearly double annual retention, and why churn directly sets lifetime value: a customer churning at 5% monthly has an expected lifetime of 20 months, while one churning at 2% stays 50.
The benchmark bands below are the ones Revenue Map's models use to flag unrealistic retention assumptions, segmented the way churn actually behaves. Enterprise SaaS holds customers hardest, with under 1% monthly churn marking excellence. SMB SaaS lives in the under-3% band, consumer subscriptions under 5%, and mobile apps under 6%, with the poor thresholds roughly double each of those.
Two practical notes when comparing yourself against the table. First, distinguish voluntary cancellations from involuntary churn: failed payments often account for 20% to 40% of total churn and can be recovered with dunning and retry logic. Second, month-1 churn typically runs 2x to 3x higher than month-6 churn, so a blended number can hide an onboarding problem. Model your churn by cohort and segment before concluding you are in the good column.
Benchmark Table
Monthly churn rate benchmarks by segment
| Metric | Poor | Average | Good | Source |
|---|---|---|---|---|
| Enterprise SaaS | Above 2%/mo | 1% to 2%/mo | Under 1%/mo | Revenue Map benchmark tables |
| SMB SaaS | Above 5%/mo | 3% to 5%/mo | Under 3%/mo | Revenue Map benchmark tables |
| Consumer subscription | Above 8%/mo | 5% to 8%/mo | Under 5%/mo | Revenue Map benchmark tables |
| Mobile app | Above 10%/mo | 6% to 10%/mo | Under 6%/mo | Revenue Map benchmark tables |
| Consumer finance apps (modeled) | Above 8%/mo | Around 5%/mo | Under 5%/mo | Revenue Map model presets |
| Dating and social apps (modeled) | Above 20%/mo | Around 15%/mo | Under 15%/mo | Revenue Map model presets |
Sources: Revenue Map benchmark tables (the thresholds behind our free calculators), Revenue Map model presets (default assumptions in our industry templates), and Revenue Map model templates (vertical research in each financial model). Ranges are screening bands, not guarantees.
Frequently Asked Questions
What is a good monthly churn rate for SaaS?
How does churn affect lifetime value?
What is involuntary churn and how much of churn is it?
Why does churn differ so much between segments?
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