Churn Rate Benchmarks (2026)

There isn't one number to compare yourself against. You need the right cut first, and the cut that matters most is what you charge.

Across ten industries measured on the same panel in the same window, annual churn runs from 28% to 43%, a spread of 15 points (Stripe Churn Benchmarks, 2025). Across order value on that same panel it runs from 40% under $10 to 15% above $10,000, a spread of 25 points (Stripe Churn Benchmarks, 2025). Industry is the cut most people reach for, and it's a reasonable place to start, but it's the weaker of the two.

A different panel, a different metric and a different year say the same thing. Top-quartile annual customer retention runs 64.7% for companies under $25 average revenue per account against 85.8% for those above $1,000 (ChartMogul SaaS Benchmarks, 2023).

To put your own number beside these, run it through the churn rate calculator. Each section below is one cut, with the population and measurement basis stated, because the most common way to misread a churn benchmark is to compare it against a figure measured differently.

Churn rate is the share of what you had at the start of a period that is gone by the end of it. The arithmetic is simple and the ambiguity isn't: three separate choices sit behind every published figure, and sources rarely make all three explicit.

Customers or revenue. Customer churn counts canceled subscriptions against subscriptions at the start of the period. Revenue churn counts revenue lost against revenue at the start. A business losing many small accounts and no large ones has high customer churn and low revenue churn, and both figures are correct.

The period. A monthly rate and an annual rate aren't interchangeable, and the conversion isn't multiplication by twelve. Compounding means 3.9% a month is roughly 38% a year, not 47%.

What is included. Some figures count only cancellations; others include payment failures. Some cover monthly-billed subscriptions only, which excludes the annual plans that retain best.

That last combination is the trap on this page. Stripe's industry figures are annual churn on monthly-billed subscriptions only, so SaaS at 38% annual is about 3.9% monthly, which sits alongside the monthly rates other panels report rather than ten times above them (Stripe Churn Benchmarks, 2025). Two figures that look an order of magnitude apart describe the same business.

The conversion table below does the compounding for you. It's the one table here you read with your own number, instead of reading it to compare against someone else's.

The strongest cut, on both panels that publish it.

On order value, churn falls as the price rises, and it falls a long way (Stripe Churn Benchmarks, 2025). On average revenue per account, retention rises with price across every quartile ChartMogul publishes, and the gap between the bottom and the top of the range is wider than the gap between any two industries (ChartMogul SaaS Benchmarks, 2023).

The reason isn't mysterious. A $9 subscription is canceled by one person changing their mind; a $1,200 subscription is canceled by a committee that has to justify the switch. Higher prices come with procurement, contracts and switching costs, and all three suppress churn.

So compare within your band. A business under $25 ARPA holding 75% annual customer retention is at the top decile of its band, and the same figure above $1,000 ARPA falls short of that band's top quartile (ChartMogul SaaS Benchmarks, 2023).

Ten industries, one panel, one window, and a narrower spread than most people expect (Stripe Churn Benchmarks, 2025).

Industry is the cut readers ask for, and the table below is more useful for what it doesn't show than for what it does. Furniture at the bottom and travel at the top differ by 15 points, while moving from an under-$10 price point to an over-$10,000 one moves churn by 25 points on the same panel (Stripe Churn Benchmarks, 2025). If your figure is unusual for your industry, price point is the first place to look before category.

Retention improves with company size on this panel, and the improvement is largely a price-point effect in different clothes: larger companies sell larger contracts.

The more useful figures here are about expansion rather than retention. The share of companies with negative net churn, meaning expansion exceeds losses, runs 9% under $300k ARR against 40% at $15-30M (ChartMogul SaaS Benchmarks, 2023). Monthly-to-annual upgrade rates move the same way, from 9% under $300K ARR to 78% at $15M-30M (ChartMogul SaaS Billing Report, 2025). If you sell at the small end of that range, the upgrade gap is the one to close first.

Annual billing tends to retain better than monthly billing at every price point that publishes both, and it buys the most where budgets are smallest.

Under $25 ARPA, annual plans retained 62% of customers against 41% for monthly, a 21-point gap (ChartMogul SaaS Billing Report, 2025). Above $100 ARPA the same comparison narrows to about ten points, and on net revenue retention at $250-500 ARPA it is 88% against 76% (ChartMogul SaaS Billing Report, 2025).

Moving a low-priced product to annual billing is one of the larger retention levers available to it, and the same move is worth proportionally less as prices rise. It isn't free either: annual billing raises the acquisition bar and defers revenue.

Involuntary churn, defined at greater length in the involuntary churn glossary entry, is subscription cancellation by payment failure rather than by decision. The two are worth separating, because the fixes have nothing in common: one is a product and pricing problem, the other is a dunning and card-updater problem.

Across all industries on one merchant panel, voluntary churn ran 2.5% against 0.9% involuntary (Recurly State of Subscriptions, 2025). That report states no period for either, so the pair is a ratio rather than a rate. As a share of total churn, involuntary is far from uniform: 35% under $10 order value, 15% at $1,000-$10,000, and back up to 24% above $10,000 (Stripe Churn Benchmarks, 2025).

That curve breaks the assumption that it's a low-price problem. It's worst at the bottom, where cards are consumer cards and fail often, and it rises again at the top, where invoices are large and payment methods are more complex.

On the voluntary side, price is the most-cited reason but not a majority one: 47% of US consumers who canceled a subscription cited a price increase (Zuora Subscription Economy Index, 2025).

A monthly customer churn rate of 1-2% is top-quartile across the whole SaaS panel, without conditioning on price or size (ChartMogul SaaS Benchmarks, 2023). That is the single number to use if you want one, and it is a high bar.

The more useful target is the top of your own band, which the price-point table above gives directly, and the retention rate calculator will put your own figure on the same scale. Read the quartile, not the median: the median tells you what is ordinary, and the top decile tells you what the same business model can achieve.

One caution on all of it. Retention benchmarks are computed on panels of companies that survived long enough to be measured, and the companies that churned out of the panel are not in it. That biases the two directions oppositely: the churn figures here are floors on the true rate and the retention figures are ceilings, and neither is a center.