---
title: "What is a good SaaS churn rate?"
summary: "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."
canonical: https://unlocksaas.com/answers/what-is-a-good-saas-churn-rate
updated: 2026-05-19
publisher: "Unlock SaaS"
author: "Maryan"
license: All rights reserved. Quotation with attribution permitted.
---

# 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.

## 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.

## Related terms

- [Weak Belief](https://unlocksaas.com/glossary/weak-belief) – One of three diagnostic labels: the person and the offer are fine but the page does not make the reader believe it will work for them.
- [Value Ladder](https://unlocksaas.com/glossary/value-ladder) – An ordered sequence of offers a customer can move through, each delivering more value than the last at a price proportional to the delivery.

---

Canonical URL: https://unlocksaas.com/answers/what-is-a-good-saas-churn-rate
Publisher: Unlock SaaS (https://unlocksaas.com)
Contact: maryan@unlocksaas.com