What is a good monthly churn rate for B2B SaaS?

For enterprise B2B SaaS, monthly logo churn under 1% is considered excellent. For SMB B2B SaaS, 1% to 2.5% monthly churn is healthy, while B2C apps typically experience 3% to 7% monthly churn.

What is Net Revenue Churn?

Net Revenue Churn measures lost MRR minus expansion revenue from existing customers. Negative Net Churn occurs when expansion revenue exceeds lost churn revenue.

Subscription Growth Analytics

SaaS Churn & Retention Calculator

Calculate your monthly customer churn rate, revenue churn %, customer half-life, and projected MRR erosion.

Account Inputs

Starting Customers (Beginning of Month)

Cancelled Customers (During Month)

Average Monthly Revenue Per User (ARPU) ($)

Monthly Expansion Revenue ($)

Monthly Logo Churn

2.50%

Logo loss rate

Monthly Retention

97.50%

100% - Churn Rate

Avg Customer Lifespan

40.0 Months

1 / Churn Rate

Revenue Impact Breakdown

Gross Lost Monthly Recurring Revenue (MRR): -$2,475 / month

Net MRR Churn Rate (Inc. Expansion): 1.69% / month

Projected 12-Month Lost Revenue: -$29,700 / year

Customer Half-Life (50% Cohort Decay): 27.4 Months

The Economics of SaaS Churn

Churn rate is the percentage of subscribers who discontinue their subcriptions within a given time period. In SaaS models, churn is the ultimate growth ceiling: even high customer acquisition rates cannot offset a high churn bucket.

Logo Churn vs. Revenue Churn

Logo churn measures the raw percentage of customer accounts lost. Revenue churn measures the net dollar amount of Monthly Recurring Revenue (MRR) lost. Negative net revenue churn occurs when upsells exceed churn loss.

Impact on Customer Lifetime Value (LTV)

Customer LTV is calculated as ARPU / Monthly Churn %. Reducing monthly churn from 5% to 2.5% doubles your customer lifetime value without changing product pricing.