If you are asking what is the average churn rate for B2B SaaS in 2026, you are asking a smart question. hurn is one of the few SaaS metrics that instantly reveals product value, customer experience quality, sales-fit, and pricing strength, but most importantly, it reflects customer retention, and it explains why churn rates are obsessed over by every serious SaaS founder.
The challenge: there is no single global churn number that fits every B2B SaaS business, because churn rates change depending on what you sell and who you sell it to. Your churn rate changes based on your target market (SMB vs enterprise), contract length, pricing, onboarding maturity, customer success coverage, and even billing setup.
Still, the best way to judge performance is by using a SaaS churn rate benchmark built on consistent industry benchmarks and recent benchmark reports.
Quick answer: average churn rate for B2B SaaS in 2026
For most B2B SaaS companies in 2026, a realistic SaaS churn rate benchmark sits around:
- 3% to 5% monthly churn (SMB-focused B2B SaaS)
- 5% to 3% monthly churn (mid-market B2B SaaS)
- 1% to 2% monthly churn (enterprise B2B SaaS)
That is the most practical range because it matches how churn rates behave across segments, and it reflects what many SaaS leaders are experiencing across pricing tiers and buyer types.
What is Churn Rate in B2B SaaS?
Churn rate is the percentage of customers (or revenue) you lose during a specific time period or subscription period.
In B2B SaaS, churn usually shows up in two ways:
- A customer cancels the subscription
- A customer downgrades (fewer seats, smaller plan)
Even if you acquire new customers every week, churn can destroy growth, which is why a SaaS churn rate benchmark helps you judge performance faster.
Two Types of B2B SaaS Churn
Voluntary Churn vs Involuntary Churn (Advanced Yet Practical)
This concept upgrades your churn analysis instantly.
Voluntary churn
A customer cancels intentionally.
Reasons:
- low product value
- poor adoption
- missing features
- budget cuts caused by market inflation
- bad service experience
- weak customer service.
Involuntary churn
A customer churns because of payment failure or payment issues.
Recurly highlights the split between voluntary churn and involuntary churn and shows churn varies by business type.
Expert move: If you sell self-serve B2B SaaS, involuntary churn can be reduced fast with billing recovery workflows and dunning management.
The Average B2B SaaS Churn Rate in 2026 (Quick Benchmark Answer)
Let us answer your main question clearly.
Average churn rate for B2B SaaS in 2026 (monthly churn rate ranges)
For 2026, one reliable SaaS churn rate benchmark is to use these ranges based on your customer segment:
SMB B2B SaaS churn rate (2026)
- 3% to 5% monthly churn
Mid-market B2B SaaS churn rate (2026)
- 5% to 3% monthly churn
Enterprise B2B SaaS churn rate (2026)
- 1% to 2% monthly churn
Some enterprise SaaS teams achieve under 1% monthly churn
These are strong practical benchmarks because churn behaves differently by segment, contract length, and switching costs, even across industry benchmarks.
Two Different Ways of Measuring “loss” in a B2B SaaS business
Customer Churn vs Revenue Churn (You Must Track Both, Including Gross churn)
If you want to sound like an expert, learn this difference early.
1) Customer churn rate (Logo churn)
This means how many customers you lose.
Example: You start the month with a Customer Count of 200 customers. You lose 6 customers.
Your monthly churn rate = 6 ÷ 200 = 3%
2) Revenue churn rate (MRR churn)
This means how much recurring revenue you lose from cancellations and downgrades.
Revenue churn is often more serious than logo churn because losing a few high-paying accounts can hurt more than losing many small customers and it crushes customer lifetime value.
Salesforce explains revenue churn as lost MRR in a month compared against your starting MRR, excluding new customer revenue.
Expert mindset:
Logo churn tells you product stickiness.
Revenue churn tells you business stability and protects Average Revenue Per User over time and for many finance teams it supports forecasting aligned with ASC 606.
How to Calculate Churn Rate Correctly (With Simple Formulas)
You do not need advanced math. You just need consistency, plus basic Cohort Analysis to see where churn starts.
Monthly customer churn rate formula
Monthly Churn % = (Customers Lost ÷ Customers at Start of Month) × 100
This is a widely accepted way to calculate churn rate.
Revenue churn rate formula (MRR churn)
A practical version is:
Revenue Churn % = (MRR Lost from churn and downgrades ÷ Starting MRR) × 100
Keep it clean:
- Exclude new customer revenue
- Track downgrades separately when possible
What is a “Good” Churn Rate for B2B SaaS in 2026?
A good churn rate depends on who you sell to.
Here is how professionals judge it.
Good churn rate for SMB B2B SaaS
- Under 4% monthly churn= strong
- Around 3% monthly churn= excellent
Good churn rate for mid-market B2B SaaS
- Under 2.5% monthly churn= strong
- Under 2% monthly churn= excellent
Good churn rate for enterprise B2B SaaS
- Under 1.5% monthly churn= strong
- Under 1% monthly churn= elite
If your churn is higher, it does not mean your product is bad, it often means the customer experience is breaking at specific points. It means your churn drivers are active.
Why B2B SaaS Churn Rates Differ So Much in 2026
Many beginners assume churn is only about the product.
In reality, churn rates are a combined outcome of multiple factors, and that is why a SaaS churn rate benchmark only makes sense when you segment your customers first:
- Customer type
- Sales quality
- Onboarding experience
- Pricing model
- Product adoption
- Customer success maturity
Let us break down the real churn levers.
1) SMB churn is naturally higher
SMB customers:
- cancel faster
- switch tools quickly
- have tighter budgets
- have fewer internal champions
That is why SMB SaaS churn rate often sits in the 3% to 5% monthly churn range.
2) Enterprise churn is naturally lower
Enterprise customers:
- sign longer contracts
- integrate deeply
- involve multiple teams
- have high switching costs
- priority support.
That is why enterprise churn rate can stay near 1% to 2% monthly churn.
3) Contract length changes churn math
Monthly plans produce higher churn rates because leaving is easy.
Annual contracts reduce churn events, improve predictability, and give your team time to improve adoption.
Types of Retention Metrics in B2B SaaS
Gross Retention vs Net Revenue Retention (This is Where Experts Stand Out)
Beginners focus on churn rate only.
Experts focus on retention quality.
Gross retention rate (GRR)
GRR measures how much revenue you keep, before expansion.
KeyBanc and Sapphire’s SaaS survey has shown gross retention around ~90%, with some decline in 2023 and expectations of improvement.
Net revenue retention (NRR)
NRR includes expansion revenue (upsells, more seats, upgrades).
KeyBanc and Sapphire reporting shows net retention around ~101%.
Why this matters in 2026: Even if you lose some customers, strong expansion revenue can keep your growth healthy.
The Most Common Reasons B2B SaaS Customers Churn in 2026
Churn rarely happens for one reason, which is why churn rates usually rise after a predictable pattern inside accounts.
1) Slow time-to-value
If customers fail to experience a meaningful result quickly, churn risk rises, because the user experience feels slow and confusing.
Examples of fast time-to-value moments:
- first workflow completed
- first report generated
- first integration connected
- first team invited successfully
2) Weak onboarding experience
Onboarding is where churn gets created, and it shapes the entire customer experience from day one.
A great product with poor onboarding still churns, and that is how customer retention quietly breaks over time.
3) Poor product adoption inside the account
Many B2B customers leave because usage stays limited to one person, and the user experience never expands across the team.
4) Misaligned sales expectations
When the sales team sells the dream and the product delivers reality, churn becomes inevitable.
5) Pricing and packaging friction
Churn increases when:
- pricing feels disconnected from value
- customers pay for features they never use
- upgrades feel forced rather than helpful, especially when customers only stay for discounted pricing.
How to Reduce Churn in B2B SaaS (Real Strategy That Works)
Reducing churn is not luck. It is structured churn management with clear owners and measurable actions. It is a system that protects customer retention at scale, supported by Churn Analysis Tools that flag early risk.
Step 1: Build a churn prevention dashboard
Build a churn prevention dashboard that includes Customer Feedback signals alongside usage and billing data. Track:
- usage drop in key features and weak feature adoption
- fewer active users and declining login frequency
- Support ticket spikes and recurring customer servicecomplaints
- billing failures triggered by a missed renewal invoice
- renewal dates within 90 days
Step 2: Fix the first 30 days experience
Your goal is to create early wins, and in 2026 many SaaS teams are improving this with AI-powered guidance inside onboarding.
A simple onboarding structure:
- Setup
- Activation
- First success outcome
- Habit-building loop
Step 3: Run customer success like a revenue function
Customer success is not customer support. It is about building long-term account relationships.
High-retention B2B SaaS teams protect customer retention using:
- health scores
- success plans
- quarterly business reviews
- stakeholder mapping
Step 4: Improve retention through expansion
If you can expand accounts, you improve NRR.
KeyBanc’s net retention benchmark staying above 100% shows many SaaS companies grow even when churn exists.
Beginner Mistakes That Make Churn Look Better Than Reality
If you want clean churn reporting, avoid these traps:
Mistake 1: Counting churned customers incorrectly
Use customers at the start of the period, not the end.
Mistake 2: Ignoring downgrades
Downgrades are often churn happening in slow motion.
Mistake 3: Mixing SMB and enterprise accounts together
You must segment churn benchmarks.
Blending segments creates misleading averages.
Mistake 4: Tracking only customer churn, ignoring MRR churn
A few lost enterprise accounts can crush revenue stability.
Track both.
The Best Way to Benchmark Your B2B SaaS Churn Rate in 2026
A professional SaaS churn rate benchmark process is simple:
1) Segment your customers
Segment by:
- SMB
- mid-market
- enterprise
2) Choose a time window
Use monthly churn rate for fast feedback, and back it up with Cohort Analysis for clearer retention patterns. Use annual churn for long-range planning.
3) Compare against realistic ranges
Use this churn benchmark recap:
- 3% to 5% monthly churnfor SMB B2B SaaS
- 5% to 3% monthly churnfor mid-market B2B SaaS
- 1% to 2% monthly churnfor enterprise B2B SaaS
4) Add retention metrics for deeper clarity
Track:
- gross retention rate ~90% benchmark
- net revenue retention ~101% benchmark
That is how churn analysis becomes board-ready for founders and operators running B2B SaaS companies and useful for customer retention decisions.
Final Takeaway
If you remember one clean answer, remember this about churn rates in B2B SaaS:
The average churn rate for B2B SaaS in 2026 depends on segment
- SMB: 3% to 5% monthly churn
- Mid-market: 5% to 3% monthly churn
- Enterprise: 1% to 2% monthly churn
If you want to go beyond average and build a strong B2B SaaS business, track churn properly, segment it, add GRR and NRR, and run retention like a growth engine.
FAQs: Average B2B SaaS Churn Rate in 2026
1) What is the average churn rate for B2B SaaS in 2026?
The average churn rate for B2B SaaS in 2026 usually falls between 1% to 5% monthly churn, depending on customer segment. SMB SaaS is commonly higher, while enterprise SaaS is lower.
2) What is a good churn rate for B2B SaaS in 2026?
A good churn rate for B2B SaaS in 2026 is:
- Under 4% monthly churnfor SMB
- Under 2.5% monthly churnfor mid-market
- Under 1.5% monthly churnfor enterprise
3) What is considered high churn in B2B SaaS?
In 2026, high churn usually means:
- Above 5% monthly churnfor SMB B2B SaaS
- Above 3% monthly churnfor mid-market B2B SaaS
- Above 2% monthly churnfor enterprise SaaS
4) What is the difference between customer churn rate and revenue churn rate?
Customer churn rate (logo churn) measures customers lost.
Revenue churn rate (MRR churn) measures recurring revenue lost from cancellations and downgrades.
5) What is logo churn in B2B SaaS?
Logo churn is another name for customer churn. It tracks how many customers cancel during a time period.
6) What is revenue churn in SaaS?
Revenue churn is the recurring revenue lost from customers cancelling or downgrading a subscription during a period.
7) What is the churn rate formula for B2B SaaS?
A standard churn rate calculation is:
Monthly churn rate % = (Customers Lost ÷ Customers at Start of Month) × 100
8) How do you calculate churn rate in SaaS the right way?
Use customers at the start of the month, track churn monthly, and segment by SMB, mid-market, and enterprise. This gives clean SaaS retention benchmarks.
9) Why is churn higher in SMB B2B SaaS?
SMB churn is higher because SMB buyers switch faster, have tighter budgets, and often prefer month-to-month subscriptions with lower switching costs.
10) Why is churn lower in enterprise SaaS?
Enterprise churn is lower because enterprise accounts have longer contracts, deeper integrations, more decision-makers, and higher switching costs.
11) What causes churn in B2B SaaS in 2026?
Common churn drivers include:
- slow onboarding
- weak product adoption
- unclear value delivery
- poor customer success support
- pricing and packaging issues
- budget cuts at the customer side
12) What is voluntary churn vs involuntary churn?
Voluntary churn happens when a customer cancels intentionally.
Involuntary churn happens due to billing failures like payment decline or card expiry.
13) What is the difference between churn rate and retention rate?
Churn rate measures loss.
Retention rate measures how much remains.
Example: 3% churn means 97% retention for that time period.
14) What is gross retention rate in B2B SaaS?
Gross retention rate (GRR) measures how much recurring revenue you keep, excluding expansion revenue. It shows how stable your base revenue is.
15) What is net revenue retention (NRR) in B2B SaaS?
Net revenue retention (NRR) includes churn, downgrades, and expansion revenue. A strong NRR means existing customers grow revenue over time.
16) What is a strong net revenue retention benchmark in 2026?
For many B2B SaaS businesses, NRR above 100% is considered strong because expansions cover churn and contraction.
17) How can a SaaS company grow even with churn?
A SaaS business can still grow when net revenue retention stays above 100% and new customer acquisition outpaces churn.
18) What is churn reduction strategy for B2B SaaS?
The best churn reduction strategies include:
- improving onboarding time-to-value
- tracking product usage drop-offs
- proactive customer success check-ins
- building renewal forecasting
- improving pricing clarity and plan structure
19) Should B2B SaaS track monthly churn rate or annual churn rate?
Track both:
- Monthly churn rategives fast signals
- Annual churn ratesupports long-term planning and investor reporting
20) Which churn metric matters most for B2B SaaS founders?
For founders, the most important churn metrics are:
- Customer churn rate(for product stickiness)
- Revenue churn rate(for stability)
- Net revenue retention(for scalable growth)
