What is a good churn rate for B2B SaaS?

For early-stage B2B SaaS under $1M ARR, net dollar churn of 1.8% monthly (about 20% annual) is the industry median. Customer churn for self-serve PLG ranges 3.0–6.5% monthly. Mature SaaS ($10M–$50M ARR) should target net dollar churn below 1% monthly. These are medians from OpenView, ChartMogul, and KeyBanc 2025 benchmark reports.

Why does churn decrease as SaaS companies scale?

Churn decreases with scale primarily because larger companies invest in customer success functions, have higher expansion revenue that offsets churn (62% offset at $10M–$50M ARR), and tend to serve enterprise customers with longer contracts and higher switching costs.

What is gross revenue retention (GRR) for SaaS in 2026?

Median GRR across all private B2B SaaS is 84% in 2026 (Benchmarkit × Aleph 2026), down 4 percentage points from 88% in 2024 — the largest single-year decline in four years. GRR measures revenue retained before expansion and is a stricter measure of retention than NRR.

SaaS Churn Rate Benchmarks: Net Dollar Churn, GRR & Customer Churn by ARR (2025 Data for 2026 Planning)

Quick Take:

GRR fell from 88% to 84% — the largest single-year decline in four years — but NRR held at 102%. Churn is being masked by expansion revenue. Only watching GRR tells you the sky is falling; only watching NRR tells you everything is fine. Neither is true alone.
Early-stage SaaS (<$1M ARR): median net dollar churn = 1.8% monthly (derived from annual NRR); self-serve PLG customer churn = 3.0–6.5% monthly.
Mature SaaS ($10M–$50M ARR): net dollar churn drops to 0.9% monthly (derived) as customer success and expansion revenue kick in.
Expansion revenue offsets 62% of gross dollar churn at mature SaaS companies — retention is as much about expansion as preventing cancellations.
All monthly figures are compound-converted from annual cohort data; original reports publish annual-only metrics. Free to cite with attribution.

Free to cite with attribution. Link back to this page as your source. Each data point below includes the original research institution, publication year, and a direct link to the source report.

What is the average churn rate for B2B SaaS in 2026?

All monthly churn figures on this page are derived estimates, converted from annual cohort retention benchmarks using the compound formula Monthly Churn = 1 − (Annual Retention)^(1/12). Original survey reports (Aleph × Benchmarkit, High Alpha, ChartMogul) publish annual-only metrics — no monthly churn numbers appear in the raw survey outputs. For B2B SaaS companies under $1M ARR, the median net dollar churn is 1.8% per month (derived) and median customer churn for self-serve PLG ranges 3.0–6.5% monthly. For mature SaaS ($10M–$50M ARR), net dollar churn drops to 0.9% monthly (derived). Median GRR across all private B2B SaaS is 84% (Aleph × Benchmarkit 2026, N=226), meaning 16% of existing ARR leaks out annually — significant expansion revenue is required just to hit 100% NRR. Churn decreases significantly as companies scale, primarily due to stronger customer success functions and higher expansion revenue.

Churn is the most widely cited SaaS metric because it directly impacts revenue predictability and company valuation. There are three distinct churn measures that are often confused: net dollar churn (revenue lost minus expansion revenue), gross dollar churn (revenue lost before expansion), and logo churn (percentage of customers lost regardless of contract value). The table below separates these measures by ARR segment and business model.

Churn Benchmarks by ARR Segment

Note: Rows marked "Derived" are mathematically converted from annual cohort retention using compound formula. Original reports publish annual-only metrics. Rows marked "Estimate" could not be independently verified against a primary source — use with caution.

Metric	ARR Segment	Business Model	Median Value	Source	Year	Note
Net Dollar Churn	<$1M ARR	Mixed	1.8% monthly	High Alpha High Alpha SaaS Benchmarks 2025	2025	Derived from annual NRR via compound conversion
Customer Churn	<$1M ARR	Self-serve PLG	3.0–6.5% monthly	ChartMogul ChartMogul SaaS Research	2025	Derived from annual cohorts
Net Dollar Churn	$1M–$10M ARR	Mixed	1.2% monthly	High Alpha High Alpha SaaS Benchmarks 2025	2025	Derived from annual NRR; exact monthly figure not in original report
Customer Churn	$1M–$10M ARR	Sales-led B2B	1.7% monthly	KeyBanc (press release only) Full report not publicly available	2025	Estimate — not independently verifiable from public source
Net Dollar Churn	$10M–$50M ARR	Mixed	0.9% monthly	ChartMogul ChartMogul SaaS Research	2025	Derived from annual NRR via compound conversion
Customer Churn	$10M–$50M ARR	Mixed	1.1% monthly	High Alpha High Alpha SaaS Benchmarks 2025	2025	Derived from annual cohorts
Net Dollar Churn	>$50M ARR	Mixed	0.6% monthly	High Alpha High Alpha SaaS Benchmarks 2025	2025	Derived from annual NRR
Gross Dollar Churn	<$1M ARR	Self-serve PLG	4.1% monthly	ChartMogul ChartMogul SaaS Research	2025	Derived from annual GRR
Gross Dollar Churn	$1M–$10M ARR	Sales-led B2B	2.3% monthly	KeyBanc (press release only) Full report not publicly available	2025	Estimate — not independently verifiable
Logo Churn	<$1M ARR	Mixed	2.9% monthly	Industry aggregate No single primary source identified	2025	Estimate — no primary source found
Gross Revenue Retention (GRR)	All Private B2B SaaS	Mixed	84% annual	Aleph × Benchmarkit 2026 SaaS & AI Benchmarks, N=226	2026	Primary source — annual metric, not derived
Net Revenue Retention (NRR)	All Private B2B SaaS	Mixed	102% annual	Aleph × Benchmarkit 2026 SaaS & AI Benchmarks	2026	Primary source — annual metric, not derived
Expansion Revenue Offset	$10M–$50M ARR	Mixed	62% of gross churn offset	ChartMogul ChartMogul SaaS Research	2025	Primary source
Customer Churn (PLG Aggregate)	All Early-Stage (<$10M)	Self-serve PLG	3.0% monthly	Paddle Paddle SaaS Metrics Guide	2025	Derived from annual cohorts

Key insight: The gap between gross dollar churn (4.1% for early PLG) and net dollar churn (1.8%) shows that expansion revenue from existing customers offsets a significant portion of churn. Mature SaaS companies ($10M+ ARR) see expansion revenue offset 62% of gross dollar churn — this is why net dollar churn decreases with scale even when customer churn remains relatively stable. The 2026 data adds a warning: median GRR fell 4 points to 84%, meaning the base is leaking faster even as expansion props up NRR. If expansion slows, NRR will collapse quickly.

Benchmark Your Metrics

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More SaaS Benchmarks

Explore other verified SaaS metric benchmarks, each with source-linked data and free-to-cite URLs:

Churn Rate Benchmarks

Net dollar churn, customer churn, and GRR by ARR segment and business model.

LTV:CAC & CAC Payback

LTV:CAC ratios, CAC payback periods, and median CAC by ARR stage.

MRR Growth Benchmarks

YoY and MoM MRR growth, NRR, and revenue per customer by stage.

Free Trial Conversion

Trial-to-paid, freemium conversion, and sales cycle benchmarks.

S&M Spend Benchmarks

Marketing and sales spend as % of ARR by funding status and GTM model.

ROAS & Expansion

Paid ad ROAS, expansion revenue share, and upsell/cross-sell rates.

← View all 54 benchmarks in the master hub

Methodology & Data Sources

Data sources: All statistics on this page are compiled from publicly available industry benchmark reports:

Aleph × Benchmarkit 2026 SaaS & AI Performance Benchmarks — Published June 2026, 342 B2B SaaS & AI-native companies (N varies by metric: GRR N=226). CY-2025 full-year actuals. Primary source for GRR (84%), NRR (102%).
High Alpha 2025 SaaS Benchmarks Report — 800+ private B2B SaaS companies, Q2 2025 data. Formerly OpenView Partners (acquired 2024). ARR-segmented NRR/GRR.
ChartMogul SaaS Research — 2,500+ SaaS businesses. Customer churn, gross dollar churn, expansion offset.
SaaS Capital 2025 Growth Benchmarks — 1,000+ private B2B SaaS companies, 14th annual survey. Bootstrapped vs equity-backed growth and retention.
Paddle SaaS Metrics Guide — Aggregated subscription commerce data.

How we converted annual retention to monthly churn: Original survey reports publish annual cohort retention metrics only. Monthly churn figures on this page are derived using the compound growth formula: Monthly Churn = 1 − (Annual Retention)^(1/12). This is not simple division by 12 — compound conversion accounts for the exponential nature of churn. For example, annual NRR of 100% corresponds to 0% monthly net churn; annual GRR of 84% corresponds to ~1.4% monthly gross churn.

Metric definitions: Net dollar churn = revenue lost minus expansion revenue from existing customers. Gross dollar churn = revenue lost before expansion (GRR = 100% − gross dollar churn). Customer/logo churn = percentage of customers who cancel, regardless of contract value. GRR = annual gross revenue retained after churn, exclusive of upsells. NRR = annual net revenue retained, inclusive of expansion.

Limitations: (1) Samples skew toward VC-backed B2B SaaS — bootstrapped company representation is not separately disclosed in most reports. (2) AI-native SaaS with high inference compute costs may show divergent gross-margin and churn patterns. (3) Median numbers are reference benchmarks, not company performance targets. (4) This is a secondary compilation, not original survey research. (5) Rows marked "Estimate" could not be independently verified against a public primary source.

Frequently Asked Questions

GRR is 84% and NRR is 102% at the same time — is my business healthy?

It depends on the trend. GRR of 84% means 16% of revenue is leaking out annually. NRR of 102% means expansion is more than covering the leak. The health question is whether GRR is stable or falling, and whether expansion is sustainable. If GRR is falling while NRR is propped up by one-time upsells, you have a retention problem masked by expansion. Track the delta between NRR and GRR — if it widens quarter over quarter, your base is eroding.

ChartMogul and Benchmarkit give different churn numbers — which should I trust?

Both, but understand why they differ. ChartMogul aggregates data from companies using their platform (skewed toward self-serve PLG and smaller ARR). Aleph × Benchmarkit surveys a broader mix including sales-led and enterprise companies. The same metric can legitimately differ because the sample populations differ. Use the source whose sample most closely matches your business model. For bootstrapped PLG under $5M ARR, ChartMogul is likely more relevant. For mixed-GTM $5–50M ARR, Benchmarkit is closer.

This page says "2026 benchmarks" but the data is from 2025 reports — is that misleading?

This is standard industry practice. The Aleph × Benchmarkit report was published June 1, 2026 and covers CY-2025 full-year actuals. Most comprehensive benchmark reports publish in the first half of the following year. The "2026" in the title refers to the report edition year and its use as the 2026 planning baseline. Every data point is labeled with its source year and data vintage. No comprehensive full-year 2026 benchmark exists yet — those will publish in 2027.

How are monthly churn figures calculated from annual data?

Monthly churn is derived using compound conversion: Monthly Churn = 1 − (Annual Retention)^(1/12). This is not simple division by 12. For example, if annual GRR is 84%, monthly gross churn = 1 − (0.84)^(1/12) ≈ 1.43%. Simple division would give 1.33%, which understates churn because it ignores compounding. Original reports publish annual-only metrics — no monthly churn numbers appear in the raw survey outputs. All derived figures are marked in the table's Note column.

What is a good churn rate for bootstrapped SaaS?

Bootstrapped SaaS typically shows lower growth but higher efficiency than VC-backed peers. SaaS Capital's 2025 survey reports bootstrapped median growth of 23% (vs 25% equity-backed) with 85% of bootstrapped companies at breakeven or profitable. For bootstrapped SaaS under $5M ARR, target net dollar churn below 2% monthly and GRR above 85%. The most relevant benchmarks are the "self-serve PLG" and "under $1M ARR" rows in the table above.

SaaS Churn Rate Benchmarks 2026