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Customer or revenue churn with SaaS benchmarks. Toggle to net revenue churn and retention.
Cancellations + downgrades to free
Customer churn rate
3.50%
Healthy
35 ÷ 1,000
| Segment | Monthly churn (healthy) | NRR target |
|---|---|---|
| B2B SMB SaaS | 2–4% | > 100% |
| B2B Mid-market SaaS | 1–2% | > 110% |
| B2B Enterprise | < 1% | > 120% |
| Consumer subscription | 3–6% | > 95% |
| Prosumer tools | 3–5% | > 100% |
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Churn rate measures the percentage of customers (or revenue) you lose in a given period. It's the single biggest constraint on subscription-business growth — a business with 5% monthly churn has to replace its entire customer base every 20 months just to stay flat.
Divide the number of customers you lost during the month by the number of customers you had at the start of the month, then multiply by 100. If you started with 1,000 customers and lost 35, churn rate = (35 ÷ 1,000) × 100 = 3.5%.
Gross revenue churn is MRR lost from cancellations and downgrades as a percentage of starting MRR. Net revenue churn subtracts expansion revenue from gross losses — upgrades, cross-sells, and price increases from existing customers. Best-in-class SaaS businesses have negative net revenue churn, meaning expansion exceeds losses.
Depends on segment. B2B SaaS: 0.5–1% monthly is elite, 2–3% is healthy, 5%+ is concerning. Consumer SaaS: 3–5% monthly is typical, 8%+ signals product-market-fit issues. Enterprise: under 1% annually is the standard. If monthly churn is above 7–8%, retention work typically beats acquisition spend for growth.
NRR = 100% − Net Revenue Churn. It's the percentage of last period's revenue you still have this period, including expansion. NRR of 110% means existing customers grew 10% in aggregate, even if some churned. Public SaaS investors consider NRR > 120% elite — companies like Snowflake and Datadog have posted 130–160%.
Onboarding. The first 30 days of customer life predict 70–80% of eventual retention. Customers who experience the core product value inside 7 days churn at ~1/3 the rate of those who don't. Tight onboarding (activation emails, setup call for B2B, success milestones) typically produces more churn reduction than any other single lever.
