SaaS Churn Rate Benchmarks 2026
By segment, vertical, and company stage. Sourced from Recurly, ProfitWell, Bessemer, SaaS Capital, and Benchmarkit. Colour-coded for quick interpretation.
By Market Segment
| Segment | Monthly Churn | Annual Churn | Median NRR | Median GRR | Source |
|---|---|---|---|---|---|
| Enterprise SaaS | < 0.5% | < 6% | 115-125% | 92-96% | Bessemer 2026 |
| Mid-Market SaaS | 1-2% | 12-22% | 105-115% | 88-93% | ProfitWell 2026 |
| SMB SaaS | 3-5% | 31-46% | 90-100% | 82-88% | Recurly 2026 |
| B2C SaaS | 6-8% | 52-64% | 85-95% | 76-84% | ProfitWell 2026 |
By Vertical
| Vertical | Monthly Churn | Annual Churn | Primary Driver |
|---|---|---|---|
| FinTech SaaS | 0.8-1.5% | 9-17% | Regulatory switching costs |
| Healthcare SaaS | 1.5-3% | 17-31% | Long contracts, compliance lock-in |
| HR Tech SaaS | 2-3.5% | 22-36% | Annual renewal cycles |
| MarTech SaaS | 3.5-6% | 36-52% | High competition, ROI scrutiny |
| EdTech SaaS | 6-9% | 52-66% | Academic calendar cycles, budget cuts |
| Horizontal SaaS | 2-4% | 22-40% | Broad use case, moderate lock-in |
Sources: Recurly State of Subscriptions 2025, ProfitWell Subscription Benchmarks, Bessemer State of the Cloud 2026.
By Company Stage
Pre-seed / Seed
5-8%
Finding PMF - churn is signal
Series A ($1-5M ARR)
3-5%
Segment refinement underway
Series B ($5-20M ARR)
2-3.5%
CS team hired, playbooks emerging
Series C+ ($20M+ ARR)
1-2%
Machine running, cohort optimization
Growth / Pre-IPO ($50M+ ARR)
0.5-1.5%
Net negative churn often achieved
What Changed in 2025-2026
NRR compression continued
Median SaaS NRR fell from 117% (2021 peak) to 101% in 2026. Budget scrutiny, seat reductions, and vendor consolidation drove this compression across all segments.
CAC inflation increased the cost of every churned customer
Outbound CAC rose 20-35% from 2021-2024. Every churned customer now represents more destroyed CAC than historical benchmarks suggest.
AI-adjacent SaaS showed better retention
SaaS tools with AI automation features showed 15-20% better retention than comparable non-AI tools in 2025-2026 data. The productivity ROI is measurable and reduces churn triggers.