Monthly Churn Percentile by Segment
Enterprise medians 0.6% monthly. SMB median 3.2%. B2C 7.5%. Pick your segment, see your percentile against peers.
Small business customers
How the Benchmark Works
Churn is structural: larger customers churn less. The right benchmark is your ACV segment, not an industry average that mixes enterprise and consumer.
1. Pick your segment
Benchmarks vary wildly across segments. The right comparison is your peer group, not the industry at large.
2. Enter your number
Your actual metric from last quarter or year. Use a trailing-12-month average if your numbers are volatile.
3. See your percentile
Result maps to a percentile against your peer segment's P10, P25, P50, P75, and P90 benchmarks.
Frequently Asked Questions
How do I calculate monthly churn rate?
Monthly Customer Churn = Customers lost during the month / Customers at the start of the month × 100. For revenue churn, swap customers for MRR. Report both.
What is a good monthly churn rate for SaaS?
Enterprise ACV $50K+: 0.3-0.8% monthly (4-9% annually). Mid-market: 0.8-1.5% monthly. SMB: 2-4% monthly. Consumer/B2C: 5-8% monthly. The smaller your customers, the higher your churn — this is structural.
Should I include trial users in churn calculations?
No. Trials end, they don't churn. Only count customers who converted from trial to paid then left later. Including trial abandonment conflates acquisition conversion with retention.
What is involuntary churn?
Customers who leave because their credit card failed or payment method expired, not because they cancelled. Typically 20-40% of SMB/prosumer SaaS churn. Recovery tactics (dunning emails, card updater services) can cut it 50-70%.
How do I convert annual churn to monthly?
Monthly churn ≈ 1 - (1 - annual churn)^(1/12). Example: 20% annual ≈ 1.84% monthly. Never use linear conversion (divide by 12) — that understates monthly churn by ~15% at typical SaaS levels.
My churn is 8% monthly. Is that bad?
For B2C, 8% monthly is near median. For B2B SaaS SMB, it's poor (median is 3.2%). Mid-market or enterprise — it's broken. 8% monthly = 63% annual customer loss. No acquisition rate scales to overcome that churn profitably.
Where is this benchmark data from?
Recurly SaaS Subscription Economy benchmarks, ChartMogul SaaS Metrics Benchmarks, SaaS Capital annual survey, and OpenView 2024 PLG benchmarks. Trailing-12-month medians for 2024.
How does customer churn differ from revenue churn?
Customer churn counts customers lost; revenue churn sums MRR lost. They can diverge significantly — losing 5 small customers while keeping your $5K enterprise account means high customer churn, minimal revenue churn. NRR is usually a better health metric.
Related Tools & Reading
Cohort Churn Tracking
Blended churn hides cohort-level drift. Track churn by acquisition cohort to catch the first signs of a retention problem.