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Churn Rate Benchmarks by Industry

Average monthly and annual churn rate across 118 industries. Compare SaaS, consumer, and marketplace benchmarks with top churn drivers for each.

Best retention industries

IndustryMonthlyAnnual
GovTech0.8%9.2%
Enterprise SaaS0.9%10.3%
RegTech1%11.4%
Accounting Software1.1%12.5%
Cybersecurity SaaS1.2%13.6%
Vertical SaaS1.2%13.6%
ERP Software1.2%13.5%
Manufacturing SaaS1.3%14.8%
Healthcare SaaS1.4%15.9%
InsurTech1.5%16.9%
Payroll Software1.5%16.5%
Legal Tech1.6%17.9%

Highest churn industries

IndustryMonthlyAnnual
Social & Dating12.4%79.2%
Health & Wellness11.3%75.3%
Food & Grocery10.8%73.6%
Education10.5%72.4%
Creator Platforms10.5%73%
Beauty & Personal Care9.8%70.9%
Health & Wellness9.5%69.8%
Health & Wellness9.2%68.4%
Fashion & Apparel9.1%67.8%
Car Subscription Services9.1%68%
Food & Beverage8.9%67%
Health & Wellness8.8%66.6%
monthly churn

Showing 118 of 118 industries

Accounting Software1.1% monthly · 12.5% annualAffiliate Networks4.2% monthly · 40% annualAgTech2.8% monthly · 29.1% annualAI/ML SaaS3.6% monthly · 35.8% annualAnalytics Platforms3.5% monthly · 35.1% annualAudiobook Services5.5% monthly · 50% annualAutomotive SaaS2.5% monthly · 26% annualB2B Marketplaces3.2% monthly · 32% annualBeauty & Personal Care9.8% monthly · 70.9% annualBusiness Intelligence Tools3.1% monthly · 32% annualCar Subscription Services9.1% monthly · 68% annualChatbot Platforms4.6% monthly · 43.9% annualChurch Management Software2.2% monthly · 23% annualCleantech SaaS2% monthly · 21.8% annualCloud Storage2.1% monthly · 22.3% annualCloud Storage & Productivity3.9% monthly · 38.2% annualCommunication / Collaboration SaaS4.2% monthly · 39.9% annualConstruction Tech2.2% monthly · 23.6% annualCoworking Spaces6.4% monthly · 54% annualCreator Platforms10.5% monthly · 73% annualCRM Software2.6% monthly · 27% annualCustomer Success Software3.5% monthly · 36% annualCybersecurity SaaS1.2% monthly · 13.6% annualDental Practice Software1.8% monthly · 19% annualDesign Tools3% monthly · 30.8% annualDeveloper Tools2.7% monthly · 28% annualDevOps / Infrastructure SaaS2.2% monthly · 23.5% annualDocument Management2% monthly · 21.4% annualE-commerce Platforms4.2% monthly · 41.2% annualE-Signature Software2.4% monthly · 25.5% annualEdTech3.8% monthly · 37.1% annualEducation10.5% monthly · 72.4% annualEducation7.4% monthly · 59.9% annualEmail Marketing Platforms3.8% monthly · 37.8% annualEnterprise SaaS0.9% monthly · 10.3% annualEntertainment6.3% monthly · 54.1% annualEntertainment4.8% monthly · 44% annualERP Software1.2% monthly · 13.5% annualEvent Management Platforms6.7% monthly · 56% annualFashion & Apparel9.1% monthly · 67.8% annualField Service Management Software2.9% monthly · 30% annualFintech SaaS2.1% monthly · 22.6% annualFitness & Wellness SaaS5.5% monthly · 48.7% annualFleet Management Software2.4% monthly · 25% annualFood & Beverage8.9% monthly · 67% annualFood & Grocery10.8% monthly · 73.6% annualFood & Grocery8.7% monthly · 66.1% annualFoodservice Tech3% monthly · 30.6% annualForm Builders4.1% monthly · 40.5% annualFreelance Marketplaces8.5% monthly · 66% annualGaming7.6% monthly · 60.6% annualGovTech0.8% monthly · 9.2% annualGym Management Software3.4% monthly · 34% annualHealth & Wellness9.2% monthly · 68.4% annualHealth & Wellness8.1% monthly · 63.5% annualHealth & Wellness11.3% monthly · 75.3% annualHealth & Wellness9.5% monthly · 69.8% annualHealth & Wellness8.8% monthly · 66.6% annualHealthcare SaaS1.4% monthly · 15.9% annualHelpdesk Software2.4% monthly · 25.1% annualHome Services Platforms5.6% monthly · 50% annualHorizontal SaaS2.9% monthly · 29.9% annualHR Tech1.8% monthly · 19.9% annualInsurTech1.5% monthly · 16.9% annualInventory Management SaaS3.2% monthly · 32.5% annualInvoicing Software2.9% monthly · 29.8% annualLearning Management Systems2.2% monthly · 23.5% annualLegal Tech1.6% monthly · 17.9% annualLive Chat Software3.4% monthly · 34% annualLogistics SaaS1.9% monthly · 20.9% annualManufacturing SaaS1.3% monthly · 14.8% annualMarketing Technology3.2% monthly · 32.5% annualMedia & Publishing5.8% monthly · 50.8% annualMedia & Publishing6.9% monthly · 57.3% annualMedia & Publishing7.2% monthly · 59% annualMembership Communities5.8% monthly · 51% annualNewsletter Platforms4.8% monthly · 45% annualNo-Code Platforms4.3% monthly · 41.9% annualNonprofit Software2.8% monthly · 29% annualOnline Course Platforms7.2% monthly · 58% annualOnline Therapy Platforms8.3% monthly · 64% annualParenting & Family8.6% monthly · 65.6% annualPassword Managers1.8% monthly · 19.4% annualPayroll Software1.5% monthly · 16.5% annualPersonal Finance7.9% monthly · 62.5% annualPet Care8.4% monthly · 65.1% annualProduct Analytics3.8% monthly · 37% annualProductivity6.5% monthly · 55.2% annualProductivity5.7% monthly · 50.2% annualProject Management Tools3.2% monthly · 32.5% annualPropTech2.5% monthly · 26.2% annualReal Estate CRM4.8% monthly · 45% annualReal Estate Platforms5.1% monthly · 46% annualRecruitment Software3.4% monthly · 34.2% annualRegTech1% monthly · 11.4% annualRestaurant POS Software3.9% monthly · 38% annualRetail Tech2.6% monthly · 27.2% annualSaaS Marketplaces3.8% monthly · 37% annualSales Enablement3.2% monthly · 33% annualSalon & Spa Software4.1% monthly · 40% annualScheduling Software3.3% monthly · 33.4% annualSEO Tools SaaS4.5% monthly · 42% annualSMB SaaS4.5% monthly · 42.3% annualSocial & Dating12.4% monthly · 79.2% annualSocial Media Management4.8% monthly · 45.5% annualSports Streaming7.2% monthly · 58% annualSubscription Box / DTC SaaS6.5% monthly · 55.3% annualSurvey Tools4.1% monthly · 40% annualTelecommunications SaaS3% monthly · 30.6% annualTelehealth Platforms6.9% monthly · 57% annualTime Tracking Software3.6% monthly · 36.1% annualTravel Tech3.5% monthly · 34.9% annualTutoring Platforms7.8% monthly · 61% annualVertical SaaS1.2% monthly · 13.6% annualVeterinary Practice Software2% monthly · 21% annualVideo Conferencing4.5% monthly · 43.1% annualVPN Services5.5% monthly · 50.7% annualWebsite Builders5.2% monthly · 48.3% annual

All churn rate benchmarks by category

SaaS - Broad (33)

SaaS - Niche Products (32)

Consumer Subscriptions (27)

Marketplaces & Other (26)

Want to see specific companies, not just industry averages?

The SaaS Churn Index scores named companies (Notion, Linear, Figma, HubSpot, and more) on publicly-observable retention signals using the same 0 to 100 Churn Health Score methodology.

Frequently Asked Questions

▶What is a good churn rate for SaaS?

The SaaS median monthly churn rate sits around 4.8%, with top-quartile companies at or below 2.0% monthly (roughly 22% annual). Consumer apps and subscription boxes typically run higher (6-10% monthly), while enterprise SaaS and vertical tools with high switching costs often achieve 1-3% monthly churn.

▶How do you calculate monthly churn rate?

Monthly churn rate = (customers lost during the month / customers at the start of the month) x 100. For revenue churn, replace customer counts with MRR. Use net churn (accounting for expansion revenue) when evaluating a SaaS business model, and gross churn when diagnosing retention problems.

▶Why does average churn rate vary so much by industry?

Churn rate depends on three factors: switching cost, value discovery speed, and category maturity. Infrastructure tools (low switching flexibility) retain better than consumer apps (low switching cost). Niche vertical SaaS retains better than horizontal tools because alternatives are fewer. Categories with fast time-to-value retain better than those requiring months of onboarding.

▶What is the difference between monthly and annual churn?

Annual churn is not 12x monthly churn because the customer base shrinks each month. Annual churn = 1 - (1 - monthly churn)^12. A 5% monthly churn rate equals 46% annual churn, not 60%. Use the formula instead of multiplication when projecting retention.

▶How often should I benchmark my churn rate?

Benchmark quarterly against industry peers and monthly against your own trailing 3-month average. Sudden spikes (more than 2 percentage points above baseline) warrant immediate investigation. Gradual drift usually signals a product-market fit erosion or a competitive shift that requires strategic response.

Know your numbers. Now find out why they churn.

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