Churn Rate Benchmarks 2026: SaaS, B2B, B2C and AI App Churn
SaaS businesses had a median churn rate of 3.22% on Recurly's network in July 2026, according to Recurly. Top-quartile SaaS was at 1.78% or below. Revenue retention tells a similar story: private B2B SaaS companies kept a median 91% of revenue before expansion in 2024, according to SaaS Capital. Churn is far higher for consumer and cheap AI products. AI-native apps priced under $50 a month kept just 23% of revenue in 2025, according to ChartMogul.
Key statistics
- SaaS businesses had a median churn rate of 3.22% on Recurly's network in July 2026, according to Recurly.
- Private B2B SaaS companies had median gross revenue retention of 91% in 2024, according to SaaS Capital's 2025 survey.
- Median net revenue retention was 33 percentage points higher for B2B SaaS than for B2C SaaS in 2025, calculated by StatisticsGlobal from ChartMogul data.
- Failed payments caused 32.9% of median SaaS churn on Recurly's network in July 2026, calculated by StatisticsGlobal from Recurly data.
- AI-native products priced under $50 a month had just 23% gross and 32% net revenue retention in 2025, according to ChartMogul.
Average SaaS churn rate 2026
There is no single average churn rate. Billing platforms report the share of subscribers lost. Investor surveys report the share of revenue kept. Both are below, with a table to convert monthly churn into annual churn.
Recurly puts the median SaaS churn rate at 3.22% in July 2026. The top quartile churns at 1.78% or less, 44.7% below the median. Across all six industries Recurly tracks, the overall rate is 3.60%.
The period matters more than the number. Recurly labels its rates annual. But a 3.22% annual churn rate would mean SaaS businesses keep almost 97% of subscribers a year, better than any retention figure in the other sources here. If the same 3.22% were monthly, it would compound to 32.5% a year. Recurly's own guide says a 2% monthly rate becomes about 22% a year, not 24%.
Revenue-based sources point to lower churn for established B2B companies. SaaS Capital's median gross revenue retention of 91% means 9% of revenue lost in a year, or about 0.78% a month. High Alpha says keeping 9 in 10 customers is the norm across ARR bands. For newer customers the loss is steeper: even top-quartile SaaS businesses kept only 70% of new customers after 12 months in 2022, according to ChartMogul. That is about 2.93% a month.
Recurly's page also contradicts itself. Its body text gives SaaS a 3.04% median and business services 3.21%, while its data tables give 3.22% and 3.44%. We use the table figures.
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SaaS businesses had a median churn rate of 3.22% on Recurly's network in July 2026, according to Recurly.
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Top-quartile SaaS businesses had churn of 1.78% or below on Recurly's network in July 2026, according to Recurly.
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Top-quartile SaaS churn was 44.7% lower than the SaaS median on Recurly's network in July 2026, calculated by StatisticsGlobal from Recurly data.
How we calculated it: 1 minus top-quartile churn divided by median churn: 1 - 1.78 / 3.22 = 0.447, or 44.7%.
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Subscription businesses had an overall churn rate of 3.60% across all industries on Recurly's network in July 2026, according to Recurly.
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Recurly's 3.22% median SaaS churn rate for July 2026 would equal 32.5% a year if it were a monthly rate, calculated by StatisticsGlobal from Recurly data.
How we calculated it: Compounded over 12 months: 1 - (1 - 0.0322)^12 = 0.325, or 32.5%. Recurly labels its rates annual; this shows the size of the difference if they are monthly.
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A 2% monthly churn rate compounds to roughly 22% annual churn, not 24%, according to Recurly's 2026 churn benchmarks guide.
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Private B2B SaaS companies had median gross revenue retention of 91% in 2024, according to SaaS Capital's 2025 survey.
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Median gross revenue retention of 91% in 2024 equals B2B SaaS revenue churn of about 0.78% a month, calculated by StatisticsGlobal from SaaS Capital data.
How we calculated it: Monthly rate that compounds to 91% retention over 12 months: 1 - 0.91^(1/12) = 0.0078, or 0.78%. Annual revenue churn is 100% - 91% = 9%.
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Top-quartile SaaS businesses kept 90% of new customers after 3 months and 70% after 12 months in 2022, according to ChartMogul.
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Keeping 70% of new customers after 12 months equals average monthly churn of about 2.93% for top-quartile SaaS businesses in 2022, calculated by StatisticsGlobal from ChartMogul data.
How we calculated it: Monthly rate that compounds to 70% retention over 12 months: 1 - 0.70^(1/12) = 0.0293, or 2.93%.
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SaaS companies in every ARR band typically retained 9 out of 10 customers in 2025, according to High Alpha.
| Monthly churn | Annual churn (compounded) | Annual churn (simple x12) | Customers kept after a year |
|---|---|---|---|
| 0.78% | 9.0% | 9.4% | 91.0% |
| 1% | 11.4% | 12% | 88.6% |
| 2% | 21.5% | 24% | 78.5% |
| 2.93% | 30.0% | 35.2% | 70.0% |
| 3% | 30.6% | 36% | 69.4% |
| 3.22% | 32.5% | 38.6% | 67.5% |
| 5% | 46.0% | 60% | 54.0% |
SaaS churn rate by industry
Recurly breaks its July 2026 medians into six subscription industries, each split into voluntary cancellations and involuntary churn from failed payments.
SaaS and business services churn least. Both sell to businesses, with higher prices and steadier billing. Education churns most, at 4.99%, or 1.55 times the SaaS rate. Its voluntary rate of 3.30% is the highest of the six, which points to a value problem more than a payment problem.
Digital media has a different issue. Its voluntary churn, 2.55%, is below ecommerce and travel. But its involuntary churn is the highest at 1.59%, so failed cards cost it more than cancellations do in other consumer categories.
For broader retention data across subscription and non-subscription businesses, see our customer retention statistics.
Source: Recurly, Churn Rate Benchmarks (July 2026 data).
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Business and professional services subscriptions had a median churn rate of 3.44% on Recurly's network in July 2026, according to Recurly.
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Travel, hospitality and entertainment subscriptions had a median churn rate of 3.91% on Recurly's network in July 2026, according to Recurly.
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Digital media and entertainment subscriptions had a median churn rate of 4.14% on Recurly's network in July 2026, according to Recurly.
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Ecommerce subscriptions had a median churn rate of 4.25% on Recurly's network in July 2026, according to Recurly.
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Education subscriptions had the highest median churn rate, 4.99%, of six industries on Recurly's network in July 2026, according to Recurly.
| Industry | Total churn | Voluntary | Involuntary | Total as monthly rate, annualised |
|---|---|---|---|---|
| SaaS | 3.22% | 2.16% | 1.06% | 32.5% |
| Business and professional services | 3.44% | 2.27% | 1.18% | 34.3% |
| Travel, hospitality and entertainment | 3.91% | 2.63% | 1.28% | 38.0% |
| Digital media and entertainment | 4.14% | 2.55% | 1.59% | 39.8% |
| Ecommerce | 4.25% | 2.87% | 1.38% | 40.6% |
| Education | 4.99% | 3.30% | 1.69% | 45.9% |
B2B vs B2C churn benchmarks
Consumer software loses customers far faster than business software. ChartMogul measures the gap in retention. Paddle's ProfitWell index tracks how churn moves over time, as a multiple of its 2019 level.
B2B SaaS companies with at least $250k ARR had median net revenue retention of 82% in 2025. B2C SaaS had 49%, a gap of 33 points, according to ChartMogul. Earlier ChartMogul data shows the same split in gross retention: only 5.3% of businesses with ARPA under $10 a month kept more than 85% of revenue in 2022, against 35.7% of those over $500.
B2B churn spiked early in 2025 and then eased. Paddle says churn rose 11% between January and March, and February and March were the highest months since its index began in 2019. By Q2 the average had fallen to 1.563 times the 2019 level, 20.6% below March and the lowest since the end of 2022. Paddle linked the spike to economic uncertainty and companies replacing older tools with AI-native ones.
B2C churn moved the same way but less. It rose 6.9% over Q1 2025 and fell 4.7% between April and June. Paddle says summer holidays may have played a part, as people use their apps less and forget to cancel.
Source: Paddle, SaaS market reports for Q1 2025 and Q2 2025.
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B2B SaaS companies had median net revenue retention of 82% in 2025, with the upper quartile at 97%, according to ChartMogul.
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B2C SaaS companies had median net revenue retention of only 49% in 2025, according to ChartMogul.
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Median net revenue retention was 33 percentage points higher for B2B SaaS than for B2C SaaS in 2025, calculated by StatisticsGlobal from ChartMogul data.
How we calculated it: B2B median NRR minus B2C median NRR: 82% - 49% = 33 percentage points.
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Only 5.3% of SaaS businesses with ARPA under $10 a month had gross retention over 85% in 2022, against 35.7% over $500, according to ChartMogul.
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B2B SaaS churn rose 11% between January and March 2025, with February and March the highest since the index began in 2019, according to Paddle.
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B2B SaaS churn averaged 1.563 times its 2019 level in Q2 2025, the lowest since the end of 2022, according to Paddle's ProfitWell index.
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B2B SaaS churn in Q2 2025 averaged 20.6% below its March 2025 level, calculated by StatisticsGlobal from Paddle ProfitWell index data.
How we calculated it: 1 minus Q2 2025 average churn index divided by March 2025 average: 1 - 1.563 / 1.969 = 0.206, or 20.6%. Index values from the Q1 and Q2 2025 Paddle reports.
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B2C SaaS churn rose 6.9% over Q1 2025, according to Paddle's ProfitWell index.
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B2C SaaS churn fell 4.7% between April and June 2025, according to Paddle's ProfitWell index.
| Month | B2B churn index | Change vs January 2025 |
|---|---|---|
| January 2025 | 1.777 | - |
| March 2025 | 1.969 | +10.8% |
| April 2025 | 1.638 | -7.8% |
| May 2025 | 1.545 | -13.1% |
| June 2025 | 1.507 | -15.2% |
| Q2 2025 average | 1.563 | -12.0% |
Voluntary vs involuntary churn rates
Voluntary churn is a customer choosing to cancel. Involuntary churn is a payment failing and the subscription lapsing. Recurly reports both by industry and by how much subscribers pay.
In SaaS, failed payments cause about a third of churn, 1.06 points of the 3.22% median. That share is churn a business can often win back without changing its product, through card retries and reminders.
Price changes the mix. Involuntary churn falls from 1.30% at $10 to $25 a month to 0.18% above $250, a drop of 86.2%. Recurly rounds it to 87%. Above $250, failed payments cause just 5.9% of churn.
Voluntary churn does not fall the same way. It is 2.40% at $100 to $250 and rises to 2.90% above $250. So total churn is lowest in the $100 to $250 tier, at 2.87%, not in the top tier.
Source: Recurly, Churn Rate Benchmarks (July 2026 data).
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Voluntary cancellations gave SaaS businesses a median churn rate of 2.16% on Recurly's network in July 2026, according to Recurly.
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Failed payments gave SaaS businesses a median involuntary churn rate of 1.06% on Recurly's network in July 2026, according to Recurly.
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Subscribers paying $10 to $25 a month had the highest median churn rate, 4.29%, of five price tiers on Recurly's network in July 2026, according to Recurly.
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Subscribers paying over $250 a month had a median involuntary churn rate of 0.18% on Recurly's network in July 2026, according to Recurly.
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Involuntary churn was 86.2% lower for subscribers paying over $250 a month than for those paying $10 to $25 on Recurly's network in July 2026, calculated by StatisticsGlobal from Recurly data.
How we calculated it: 1 minus involuntary churn over $250 divided by involuntary churn at $10 to $25: 1 - 0.18 / 1.30 = 0.862, or 86.2%. Recurly rounds the same drop to 87%.
| Monthly price | Total churn | Voluntary | Involuntary | Share from failed payments |
|---|---|---|---|---|
| $10 to $25 | 4.29% | 2.99% | 1.30% | 30.3% |
| $25 to $50 | 3.84% | 2.73% | 1.11% | 28.9% |
| $50 to $100 | 3.15% | 2.41% | 0.74% | 23.5% |
| $100 to $250 | 2.87% | 2.40% | 0.46% | 16.0% |
| Over $250 | 3.07% | 2.90% | 0.18% | 5.9% |
Net revenue retention benchmarks by price point
Net revenue retention (NRR) counts upgrades and price rises as well as losses, so it can top 100%. Gross revenue retention (GRR) counts only losses. SaaS Capital's 2025 survey of more than 1,000 private B2B SaaS companies is the largest recent source.
The median private B2B SaaS company kept 91% of revenue before expansion and 101% after it in 2024. Expansion added about 10 points. Contract size matters most. Above $250,000 a year, median GRR was 95% and NRR 106%. Under $12,000, median NRR was 98%, so the typical small-ticket company shrank within its existing base.
Longer contracts help, but less than price. Multi-year contracts had 5 points more gross retention than month-to-month. ChartMogul puts the annual plan advantage higher, at 10 to 20 points of NRR, but its sample includes many cheaper and consumer products.
Retention drives growth. Companies with NRR above 130% grew a median 50%, 3.3 times the 15% of those below 90%, according to SaaS Capital. At scale, expansion is the main source of new revenue. High Alpha says companies above $50 million ARR get roughly 60% of new ARR from existing customers.
The sources disagree on the typical level. SaaS Capital's 101% median NRR is 19 points above ChartMogul's 82% for B2B SaaS. SaaS Capital surveys private companies, and its price charts exclude those under $1M ARR. ChartMogul measures billing data from companies with $250k ARR or more. For growth benchmarks by company stage, see our startup statistics.
Source: SaaS Capital, 2025 B2B SaaS Retention Benchmarks, Figure 3. Survey median growth across all companies was 24%.
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Private B2B SaaS companies had median net revenue retention of 101% in 2024, according to SaaS Capital's 2025 survey.
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Expansion added a median 10 percentage points to B2B SaaS revenue retention in 2024, calculated by StatisticsGlobal from SaaS Capital data.
How we calculated it: Median NRR minus median GRR: 101% - 91% = 10 percentage points. Medians are taken separately, so this is approximate.
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B2B SaaS companies with annual contract values above $250,000 had median gross revenue retention of 95% in 2024, according to SaaS Capital.
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Median net revenue retention ranged from 98% for B2B SaaS contracts under $12,000 a year to 106% above $250,000 in 2024, according to SaaS Capital.
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B2B SaaS companies on multi-year contracts had median net retention of 103% and gross retention of 94% in 2024, according to SaaS Capital.
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B2B SaaS companies on month-to-month contracts had median net retention of 100% and gross retention of 89% in 2024, according to SaaS Capital.
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Median gross revenue retention was 5 percentage points higher on multi-year than month-to-month B2B SaaS contracts in 2024, calculated by StatisticsGlobal from SaaS Capital data.
How we calculated it: Multi-year median GRR minus month-to-month median GRR: 94% - 89% = 5 percentage points.
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Bootstrapped B2B SaaS companies had median net retention of 104% and gross retention of 92% in 2024, above equity-backed peers at 101% and 90%, according to SaaS Capital.
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B2B SaaS companies with net retention above 130% had median growth of 50% in 2024, against 15% below 90%, according to SaaS Capital.
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B2B SaaS companies with net retention above 130% grew 3.3 times as fast as those below 90% in 2024, calculated by StatisticsGlobal from SaaS Capital data.
How we calculated it: Median growth with NRR above 130% divided by median growth with NRR below 90%: 50% / 15% = 3.33 times.
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Median net revenue retention was 10 to 20 percentage points higher for annual plans than monthly plans in 2025, according to ChartMogul.
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Best-in-class SaaS gross revenue retention was over 86% at any stage of business in 2022, according to ChartMogul.
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More than half of SaaS businesses had lower retention rates in 2022 than in 2021, according to ChartMogul.
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SaaS companies with over $50 million ARR generated roughly 60% of new ARR from existing customers in 2025, according to High Alpha.
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Median B2B SaaS net revenue retention was 19 percentage points lower in ChartMogul's 2025 data than in SaaS Capital's 2024 survey, calculated by StatisticsGlobal from ChartMogul and SaaS Capital data.
How we calculated it: SaaS Capital median NRR for 2024 (101%) minus ChartMogul B2B SaaS median NRR for 2025 (82%) = 19 percentage points. Samples differ: SaaS Capital surveys private B2B companies; ChartMogul measures billing data for companies with $250k+ ARR.
| Group | Net revenue retention | Gross revenue retention |
|---|---|---|
| All companies | 101% | 91% |
| Multi-year contracts | 103% | 94% |
| Annual contracts | 101% | 90% |
| Month-to-month contracts | 100% | 89% |
| Bootstrapped | 104% | 92% |
| Equity-backed | 101% | 90% |
| ACV over $250,000 | 106% | 95% |
AI app churn and retention rates
ChartMogul compared retention at about 200 AI-native companies with B2B and B2C SaaS through 2025. It found AI apps churn faster than even consumer software, unless they sell at business prices.
AI-native companies had median GRR of 40% in 2025. They lost more than half their starting revenue in a year, before upsells. That was worse than B2C SaaS. Their NRR of 48% was close to B2C's 49%.
It is improving. Median AI-native GRR rose from 27% in January to 40% in September 2025. ChartMogul suggests early users who were only trying the products had left by then.
Price is the dividing line. Above $250 a month, AI products kept 70% of revenue gross and 85% net, close to B2B SaaS. Under $50 a month, they kept 23% and 32%. ChartMogul notes that some of its AI-native splits hold only about 50 companies each, so treat them as directional.
Source: ChartMogul, The SaaS Retention Report: The AI Churn Wave (December 2025).
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AI-native companies had median gross revenue retention of 40% and net revenue retention of 48% in 2025, according to ChartMogul.
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Median gross revenue retention for AI-native companies rose from 27% in January 2025 to 40% in September 2025, according to ChartMogul.
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AI-native gross revenue retention rose by 13 percentage points, or 48.1%, between January and September 2025, calculated by StatisticsGlobal from ChartMogul data.
How we calculated it: September minus January median GRR: 40% - 27% = 13 points. Relative rise: 13 / 27 = 0.481, or 48.1%.
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AI-native products priced above $250 a month had 70% gross and 85% net revenue retention in 2025, according to ChartMogul.
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AI-native products priced at $50 to $249 a month had 45% gross and 61% net revenue retention in 2025, according to ChartMogul.
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AI-native products priced under $50 a month had just 23% gross and 32% net revenue retention in 2025, according to ChartMogul.
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Gross revenue retention for AI-native products was 47 percentage points higher above $250 a month than under $50 in 2025, calculated by StatisticsGlobal from ChartMogul data.
How we calculated it: GRR above $250 a month minus GRR under $50 a month: 70% - 23% = 47 percentage points. NRR ratio: 85 / 32 = 2.66 times.
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The best AI-native companies had 2 times the gross and 2.5 times the net revenue retention of early-stage AI peers in 2025, according to ChartMogul.
| Monthly price | Gross revenue retention | Net revenue retention | Implied gross revenue lost in a year |
|---|---|---|---|
| Under $50 | 23% | 32% | 77% |
| $50 to $249 | 45% | 61% | 55% |
| Above $250 | 70% | 85% | 30% |
| All AI-native | 40% | 48% | 60% |
How these churn benchmarks are measured
Every source here is a software vendor or investor reporting on its own customers or survey respondents. None is an official statistic, and each one measures churn differently.
There are three kinds of churn here. Customer, or logo, churn counts subscribers lost. Gross revenue churn counts revenue lost. Net revenue retention adds back upgrades. A business can lose 20% of customers but keep 100% of revenue if the ones who stay pay more. Compare like with like.
The period also varies. Recurly labels its rates annual, but they sit close to typical monthly churn levels in other data. SaaS Capital and ChartMogul measure over 12 months. Paddle does not publish a churn rate at all, only an index against 2019, so it shows direction, not level.
Samples are not random. Billing platforms see their own customers, who may already invest in reducing churn. Surveys rely on companies reporting their own numbers. The newest ChartMogul report with full ARPA tables uses 2022 data. Paddle's latest report we could find covers Q2 2025.
| Source | Sample | Measure | Data period |
|---|---|---|---|
| Recurly | Subscription businesses billing through Recurly, number not given | Median subscriber churn, labelled annual | July 2026 |
| ChartMogul (AI Churn Wave) | About 3,500 software companies, $250k+ ARR for retention | Annualised GRR and NRR | 2025 |
| ChartMogul (Retention Report) | 2,100+ SaaS businesses | 12-month customer, gross and net retention | 2022 |
| SaaS Capital | 1,000+ private B2B SaaS companies, survey | Median annual GRR and NRR | December 2023 to December 2024 |
| Paddle (ProfitWell index) | Sample of 34,000+ companies on ProfitWell Metrics | Churn index, 1.0 = 2019 level | Q1 and Q2 2025 |
| High Alpha | 800+ survey respondents, mostly US | GRR, NRR and expansion by ARR band | 2025 |
Frequently asked questions
What is a good churn rate for SaaS?
On Recurly's network, the median SaaS churn rate was 3.22% in July 2026 and the top quartile was at 1.78% or below. In revenue terms, private B2B SaaS companies kept a median 91% of revenue before expansion in 2024, according to SaaS Capital. Above $250,000 contract value, the median was 95%.
What is the difference between B2B and B2C churn?
B2C churns far more. Median net revenue retention was 82% for B2B SaaS and 49% for B2C SaaS in 2025, according to ChartMogul. Lower prices, fewer upsells and impulse sign-ups all push consumer churn up.
Is SaaS churn getting better or worse than last year?
B2B churn on Paddle's ProfitWell index hit its highest level since 2019 in February and March 2025, then fell. The Q2 2025 average was 20.6% below March and the lowest since the end of 2022. AI-native app retention also improved, from 27% GRR in January 2025 to 40% in September.
How do you convert monthly churn to annual churn?
Use 1 - (1 - monthly rate)^12, not monthly rate times 12. A 2% monthly rate is about 22% a year, according to Recurly. A 3% monthly rate is 30.6% a year and 5% is 46.0%.
Which industry has the highest churn rate?
Education, with a median of 4.99% on Recurly's network in July 2026. Ecommerce (4.25%) and digital media (4.14%) follow. SaaS is lowest, at 3.22%.
Why do AI apps have high churn?
Many are cheap, self-serve and easy to cancel. AI-native products under $50 a month kept just 23% of revenue gross in 2025, according to ChartMogul. Above $250 a month, they kept 70%, close to B2B SaaS.
Sources
- Recurly, Churn Rate Benchmarks, July 2026 data, accessed 9 November 2026. Link · Saved data copy
- SaaS Capital, 2025 B2B SaaS Retention Benchmarks (Research Brief 32), September 2025. Link · Saved data copy
- ChartMogul, The SaaS Retention Report: The AI Churn Wave, 10 December 2025. Link · Saved data copy
- ChartMogul, The SaaS Retention Report, 2023, 2022 data. Link · Saved data copy
- High Alpha, 2025 SaaS Benchmarks Report, 2025. Link · Saved data copy
- Paddle, SaaS market report: Q1 2025, 30 April 2025. Link · Saved data copy
- Paddle, SaaS market report: Q2 2025, 30 July 2025. Link · Saved data copy
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- : First published.