SaaS Churn Rate Benchmarks
How does your churn rate compare? Average monthly and annual churn rates by industry, sourced from Recurly, ProfitWell, and Baremetrics research.
| Industry | Monthly Churn | Annual Churn | Source |
|---|---|---|---|
| SaaS (Overall) | 4.8% | 44% | Recurly Research 2025 |
| SaaS (Enterprise) | 1% | 11% | ProfitWell |
| SaaS (SMB) | 5% | 46% | ProfitWell |
| SaaS (B2C) | 7.5% | 60% | Baremetrics |
| Media & Entertainment | 5.2% | 47% | Recurly Research 2025 |
| Education / E-Learning | 4.2% | 40% | Recurly Research 2025 |
| Fintech | 3.5% | 35% | Recurly Research 2025 |
| Healthcare | 4% | 39% | Recurly Research 2025 |
| E-Commerce (Subscription) | 6.5% | 55% | Recurly Research 2025 |
| Fitness & Wellness | 7% | 58% | Recurly Research 2025 |
| Consumer Apps | 8% | 63% | ProfitWell |
| IoT / Hardware-as-a-Service | 2.5% | 26% | Baremetrics |
How to interpret these numbers
Below 3% monthly — Excellent. Enterprise SaaS with strong contracts and high switching costs.
3-6% monthly — Average for most SaaS. Room for improvement but not alarming.
Above 6% monthly — High. Common in B2C, consumer apps, and low-price subscription products. Needs attention.
Note: B2B and enterprise churn is typically measured as annual churn (5-15% is healthy). Monthly churn rates matter more for SMB and B2C SaaS where contract terms are shorter.