What Is a Good Churn Rate? 2026 Benchmarks

B2B SaaS median monthly churn is 3.5%. Enterprise SaaS achieves 1.2%. Consumer subscriptions average 5.6%/mo. Find your industry benchmark below. Get started free By Benchmarketing Research Team Reviewed by Performance Marketing Editorial Reviewed March 2026 · observations Q1 2023 – Q4 2024

Monthly churn rate benchmarks · 2026

3.5%

B2B SaaS (all), monthly churn · median

Enterprise SaaS
1.2%
Consumer SaaS
5.6%
Ecommerce (repeat)
14.1%

Monthly Churn Rate by Industry

Lower is better. P25 = top performers, P75 = bottom quartile.

Media & Entertainment 6.8% Consumer SaaS 5.6% B2B SaaS (SMB) 3.5% B2B SaaS (Enterprise) 1.2% Ecommerce 14.1% Fitness & Wellness 9.3% Financial Services 3% Healthcare 4.1% Agency / Services 19.8% Nonprofit 9.8%

Churn Rate by Industry — Detailed Breakdown

Monthly churn rate ranges. Note: ecommerce churn measures repeat buyer retention, not subscription cancellation.

SegmentMedianP25 (Bottom)P75 (Top)Elite
Media & Entertainment 6.8% 4.2%10.1% -
Consumer SaaS 5.6% 3.8%9.4% -
B2B SaaS (SMB) 3.5% 2.1%6.2% -
B2B SaaS (Enterprise) 1.2% 0.5%2.8% -
Ecommerce 14.1% 8.4%22.8% -
Fitness & Wellness 9.3% 5.9%14.2% -
Financial Services 3.0% 1.8%5.4% -
Healthcare 4.1% 2.4%7.0% -
Agency / Services 19.8% 12.0%28.5% -
Nonprofit 9.8% 6.0%16.2% -

Churn Rate by Geography

Monthly churn varies by region. Emerging markets see higher churn due to price sensitivity and payment infrastructure challenges.

North America (US + Canada) 4.2% Western Europe 3.6% Asia Pacific (excl. South Asia) 6.4% Latin America 8.8% MENA 6% Sub-Saharan Africa 10.8% South Asia (India + BD + PK) 8.2%

Churn Rate by Geography

North America and Western Europe show lowest churn. Sub-Saharan Africa and Latin America see highest churn, often driven by involuntary payment failures.

SegmentMedianP25 (Bottom)P75 (Top)Elite
North America (US + Canada) 4.2% 2.4%7.8% -
Western Europe 3.6% 2.0%6.8% -
Asia Pacific (excl. South Asia) 6.4% 3.8%11.2% -
Latin America 8.8% 5.2%14.4% -
MENA 6.0% 3.4%10.4% -
Sub-Saharan Africa 10.8% 6.4%17.2% -
South Asia (India + BD + PK) 8.2% 4.8%13.6% -

Churn Rate by Sales Motion (GTM)

Enterprise sales-led models achieve the lowest churn due to contractual commitments and dedicated customer success. PLG self-serve sees the highest volatility.

SegmentMedianP25 (Bottom)P75 (Top)Elite
Self-Serve / PLG 7.6% 4.8%13.2% -
Sales-Led (SMB) 3.8% 2.4%6.8% -
Sales-Led (Enterprise) 1.4% 0.6%3.2% -
Product-Led Growth (hybrid) 4.4% 2.8%8.4% -

Churn Rate by Price Point (SaaS)

Higher price point consistently correlates with lower monthly churn across all SaaS verticals.

SegmentMedianP25 (Bottom)P75 (Top)Elite
<$10/mo 8.4% 5.2%14.1% -
$10–$50/mo 4.8% 2.9%8.2% -
$50–$200/mo 2.9% 1.8%5.1% -
$200–$1k/mo 1.7% 0.9%3.2% -
$1k+/mo 0.8% 0.4%1.9% -

How to Reduce Churn

01

Build an early warning system

Define churn risk signals specific to your product: login frequency drop, feature disengagement, support ticket spikes. Trigger automated outreach when 2+ signals fire simultaneously — most effective within the first 14 days of decline.

02

Conduct exit interviews systematically

Survey every churned customer within 24 hours. Ask one open-ended question: "What was the main reason you cancelled?" Categorize responses monthly. The top 3 categories represent your product roadmap and CS training priorities.

03

Recover involuntary churn first

Failed payments account for 20–40% of churn. Implement Stripe's Smart Retries, send a dunning sequence (day 1, 3, 7, final warning), and add a payment method update link to every email. This alone recovers 35–50% of involuntary churn at near-zero marginal cost.

04

Move customers to annual plans

Annual subscribers churn at 2–4x lower rates than monthly equivalents. Offer a 20% annual discount on your upgrade prompts. Create urgency with limited-time annual offers at month 2–3 when engagement is highest.

05

Run a cancellation flow with saves

Before confirming cancellation, present a pause option, a downgrade option, and a personalized save offer. Well-designed cancellation flows recover 15–25% of at-risk users without reducing perceived brand quality.

Frequently Asked Questions

For B2B SaaS, under 1.5% monthly churn (18% annually) is considered healthy. Under 0.5% monthly is excellent. Consumer SaaS has higher acceptable thresholds — 3–5% monthly is common. Always model churn against LTV to determine if the business is sustainable.

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These benchmarks are drawn from a multi-source benchmark cohort aggregated across industries and regions, covering the period Q1 2023 – Q4 2024. Figures on this page come from the Benchmarketing benchmark dataset: thousands of curated benchmark observations spanning channels, industries, and US metro areas, refreshed on a published schedule. Every statistic traces to a named source — no anonymous “studies show.” Data is sourced from:

  • WordStream Google Ads Benchmarks (2024) - Third-party research
  • Meta Business Insights (2024) - Platform data
  • HubSpot Email Marketing Report (2024) - Third-party research
  • Unbounce Conversion Benchmark Report (2024) - Third-party research
  • Databox Marketing Benchmark Report (2024) - Third-party research
  • AdLiftr Snapchat Ads Cost Benchmarks (2026) - Third-party research
  • Ad Badger Amazon Advertising Benchmarks (2026) - Third-party research

The Benchmarketing 4-Band Method reads every marketing metric against four percentile bands — P25 (bottom quartile), median, P75 (top quartile), and elite (top ~10%) — for a specific industry and channel, instead of a single cross-industry average. Averages blend brand and non-brand campaigns, $500/month and $500,000/month accounts, and unrelated industries into a number almost nobody actually has.

Benchmarks reflect median values across large sample sets. Your industry, business model, and account maturity will cause variation. Use P25/P75 ranges to understand realistic distribution.

Read full methodology

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