Churn Rate Benchmark Grader
Is your churn rate good or bad for your market? Get an A–F grade against real benchmarks segmented by ARPU and business type.
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SaaS churn rate benchmarks 2026
Monthly churn benchmarks by segment. These figures are based on aggregated data from thousands of subscription businesses.
| Segment | Great | Average | High risk |
|---|---|---|---|
| B2B · < $50/mo ARPU | ≤ 3.0% | ≤ 5.0% | > 7.0% |
| B2B · $50–200/mo ARPU | ≤ 2.0% | ≤ 3.5% | > 5.0% |
| B2B · $200+/mo ARPU | ≤ 1.5% | ≤ 2.5% | > 4.0% |
| B2C · < $50/mo ARPU | ≤ 5.0% | ≤ 8.0% | > 12% |
| B2C · $50–200/mo ARPU | ≤ 4.0% | ≤ 6.0% | > 9.0% |
| B2C · $200+/mo ARPU | ≤ 3.0% | ≤ 5.0% | > 7.0% |
Frequently asked questions
What is a good monthly churn rate for B2B SaaS?
For B2B SaaS under $50/mo ARPU, 2–3% monthly churn is considered good. For $50–200/mo ARPU, under 2% is the target. Enterprise-tier products ($200+/mo) should aim for below 1.5%. These numbers come from aggregated data across thousands of SaaS companies.
Why does ARPU affect the churn benchmark?
Higher ARPU products typically serve more engaged customers with higher switching costs — which structurally reduces churn. A $500/mo customer is far less likely to cancel impulsively than a $10/mo user. This is why SaaS companies with high ARPU can sustain lower churn rates than their low-ARPU counterparts.
What's the difference between voluntary and involuntary churn?
Voluntary churn is when a customer actively decides to cancel. Involuntary churn is when their payment fails and the subscription lapses — they didn't intend to cancel. Industry data shows ~40% of SaaS churn is involuntary. This matters because involuntary churn is almost entirely preventable with dunning emails and smart retries.
Calculate your involuntary churn loss →My churn rate is high — what should I fix first?
Start with the involuntary component: set up dunning emails and smart retries. This is the lowest-effort fix with the fastest ROI. Then add a cancel-flow with exit survey to understand and address voluntary cancellation reasons. Together, these two interventions typically reduce churn by 1.5–3 percentage points in 60 days.
Complete your analysis
Failed Payment Recovery Calculator
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MRR Leakage Calculator
Total MRR at risk across failed payments, cancellations, and expiring cards.
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