10 Key SaaS Churn Statistics You Must Know in 2025

SaaS churn statistics reveal the key factors affecting customer retention in the industry. These figures are essential for understanding why customers leave and how to improve satisfaction. Reducing churn is vital for maintaining growth and loyalty in today’s competitive SaaS landscape. Are you keeping track of your churn rate? How are you addressing customer satisfaction to retain clients?

How we collected this data

We sourced data from trusted experts like Insivia, Recurly Research, Techopedia, and Cloudwards. Through detailed research and analysis, we highlight key churn trends, helping SaaS companies understand and reduce churn for better retention.

10 SaaS churn statistics you should know

1. SaaS companies with annual revenues over $10M have an average churn rate of 8.5%, while smaller companies can face churn rates exceeding 20%. [Insivia]

2. 20-40% of churn comes from expired credit cards or failed payments. [The CFO Club]

3. The average churn rate across 1,200+ SaaS companies is 4.1% (3.0% voluntary, 1.1% involuntary). [Recurly Research]

4. Large SaaS businesses have a churn rate of 6-10%. [Tomtunguz]

5. The acceptable churn rate is 5-7%, and in 2023, the annual SaaS churn rate was 5.2%. [Techopedia]

6. Early-stage SaaS should aim for 4.5-5% churn after product-market fit. [Forbes]

7. In March 2024, the average B2B SaaS churn rate was -1.59%, which is 12% lower than March 2023. [Paddle]

8. The median gross dollar churn for private SaaS companies is 14%. [Cloudwards]

9. The annual median logo churn for private SaaS companies is 13%. [Cloudwards]

10. SaaS companies should keep churn rates below 8%, with monthly churn around 3% for sustainability. [Cloudwards]

Conclusion

SaaS churn statistics provide essential insights into customer retention and product satisfaction. By focusing on reducing churn, businesses can strengthen customer loyalty, ensure steady growth, and enhance long-term success.