Updated: July 2026 | 6 min read

Executive Summary

Churn rate is the percentage of recurring revenue or customers a SaaS company loses over a period. This article compiles SaaS churn benchmarks from three primary sources: Octopus Data 2025 SaaS Churn Benchmarks report, ChartMogul SaaS benchmarks, and OpenView SaaS Benchmarks survey. Each source samples different company populations; numbers are directional and should not be treated as industry-wide standards.

Quick Overview

  • Octopus Data 2025 report (sample of several thousand private SaaS companies): median annual churn ~4.5%, median of the distribution ~3.0% (source: Octopus Data 2025 SaaS Churn Benchmarks).
  • Median net revenue retention (NRR) for growth-stage SaaS is roughly 91% per Octopus Data 2025 (source: same).
  • Healthy gross revenue retention (GRR) benchmarks range between 72-76% depending on ARR band (source: OpenView SaaS Benchmarks).
  • ChartMogul reports median annual churn around 5% across its portfolio (source: ChartMogul Blog SaaS benchmarks section).
  • Top-performing SaaS companies achieve NRR >100% typically cited as “negative churn” (source: multiple analyst reports).
  • Enterprise SaaS vendors generally report higher NRR than SMB-focused vendors due to seat expansion and cross-sell.

What Counts as Good Churn

There is no single “good” SaaS churn rate because benchmarks vary by company stage, ARR band and customer segment. The Octopus Data 2025 report (sample of several thousand private SaaS companies) found a median annual churn of ~4.5% with the median of the distribution at ~3.0%. Median net revenue retention for growth-stage companies is roughly 91%. OpenView benchmarks (which span different company populations) estimate healthy GRR in the 72-76% range depending on ARR band. ChartMogul median annual churn figure runs around 5%.

How Benchmarks Are Calculated

Churn benchmarks can be measured on a logo basis (number of customers lost), revenue basis (contraction + churned ARR), or net basis (net revenue retention, which includes expansion from existing customers). Each method produces different numbers. The Octopus Data 2025 report uses ARR-based annual churn. ChartMogul uses revenue-based churn on its portfolio of subscription businesses. OpenView GRR and NRR bands survey public and private companies. Always verify the denominator when comparing benchmark figures.

Key Takeaways

  • Octopus Data 2025: median annual churn ~4.5%, median of distribution ~3.0% (private SaaS, ex-public) (source: Octopus Data 2025).
  • NRR median ~91% for growth-stage SaaS (same Octopus Data 2025 report).
  • OpenView: healthy GRR 72-76% by ARR band (source: OpenView SaaS Benchmarks).
  • ChartMogul: median annual churn ~5% (source: ChartMogul Blog).
  • Benchmarks are directional; sample bias applies to every source.

Churn Rate Definitions and Measurement

Churn rate in SaaS is measured in several ways, and the choice of denominator significantly affects the reported number. Logo churn measures the percentage of customers lost over a period. Revenue churn measures the percentage of recurring revenue lost, net of any expansion from remaining customers. Net revenue retention includes expansion revenue from existing customers and can exceed 100%, sometimes called negative churn. Gross revenue retention excludes expansion and only measures contraction plus churn. The Octopus Data 2025 report uses ARR-based annual churn. ChartMogul uses revenue-based churn on its portfolio of subscription businesses. OpenView gross revenue retention and net revenue retention bands survey public and private companies. When comparing benchmarks, always verify whether the metric is logo-based, revenue-based, or net-based.

Benchmarks by ARR Band and Stage

Churn benchmarks vary significantly by company size and stage. OpenView benchmarks show that companies with ARR above $15 million typically achieve higher net revenue retention than sub-$1 million ARR companies, partly because larger customers expand seats and modules over time. Octopus Data 2025 found median net revenue retention of roughly 91% for growth-stage SaaS, with the top quartile achieving net revenue retention above 110%. ChartMogul portfolio data show median annual churn around 5%, with enterprise-focused companies typically below 4% and SMB-focused companies above 6%. These benchmarks are directional: Octopus Data excludes public companies, ChartMogul reflects its own portfolio, and OpenView relies on self-reported survey data. No single benchmark should be treated as an industry-wide standard.

Churn reduction strategies in 2026 increasingly leverage product-led onboarding, customer-health scoring and expansion-motion playbooks. The benchmarks cited in this article (Octopus Data 2025, OpenView SaaS Benchmarks, ChartMogul) reflect company-level outcomes rather than prescriptive advice. When applying a benchmark to your own company, verify that your ARR band, customer segment and growth stage align with the benchmark sample. A median benchmark from a sample of private SaaS companies may not apply to publicly traded SaaS vendors or to very early-stage startups.

Organizations evaluating churn benchmarks should verify that the benchmark sample aligns with their ARR band, customer segment and funding stage before applying benchmark figures to internal planning.

Methodology and Limitations

  • Octopus Data 2025 sample excludes publicly traded companies, PE-backed firms and very early-stage startups.
  • ChartMogul’s data reflects its own portfolio of subscription businesses; sample bias applies.
  • OpenView’s benchmarks rely on self-reported survey data.
  • Forecasts are clearly labelled; no CAGR-style projections are presented as fact.

Sources

  1. Octopus Data: 2025 SaaS Churn Benchmarks (2025).
  2. ChartMogul: SaaS Benchmarks Report (2026).
  3. OpenView: SaaS Benchmarks insights (2026).