Answer
What is a good SaaS churn rate?
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Answer key facts
- Question
- What is a good SaaS churn rate?
- Direct answer
- Indie SaaS monthly churn sits between 5% and 12% for SMB-focused products and 3% to 7% for B2B mid-market. Above those bands usually indicates a positioning problem (wrong-fit signups) rather than a product problem. The headline number hides cohort variance – ICP-fit churn is typically much lower than average.
- Category
- metrics
- Last verified
- May 19, 2026
Direct answer
Direct answer
As of , the answer is: Indie SaaS monthly churn sits between 5% and 12% for SMB-focused products and 3% to 7% for B2B mid-market. Above those bands usually indicates a positioning problem (wrong-fit signups) rather than a product problem. The headline number hides cohort variance – ICP-fit churn is typically much lower than average.
People also ask
What is a good SaaS churn rate?
Indie SaaS monthly churn sits between 5% and 12% for SMB-focused products and 3% to 7% for B2B mid-market. Above those bands usually indicates a positioning problem (wrong-fit signups) rather than a product problem. The headline number hides cohort variance – ICP-fit churn is typically much lower than average.
What's the nuance?
Annual plans churn 3 to 5x less than monthly – plan mix dominates the headline rate.
What else should I know?
First-30-day churn (activation) should be tracked separately from steady-state churn.
What's the common mistake here?
20-40% of total churn is involuntary (failed cards). Smart retry logic recovers 50-70% of involuntary churn.
Supporting points
- Annual plans churn 3 to 5x less than monthly – plan mix dominates the headline rate.
- First-30-day churn (activation) should be tracked separately from steady-state churn.
- 20-40% of total churn is involuntary (failed cards). Smart retry logic recovers 50-70% of involuntary churn.
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