Typical SaaS Churn Rate: How Bootstrapped Founders Can Benchmark and Protect Their Runway

Short summary

Bootstrapped founders often miss their true churn rate by tracking only logo churn instead of revenue impact. Typical SaaS churn ranges from 5-7.5% monthly for B2C to 0.5-1.5% for Enterprise, but the calculation method—logo, gross MRR, or net MRR churn—determines whether you spot danger. At 5% monthly churn, a $13,780 MRR base erodes to just $7,518 in twelve months; escaping this treadmill requires net negative churn.

• •Churn rate varies by market segment: B2C 5-7.5% monthly, SMB 3-5%, Mid-Market 1.5-3%, Enterprise 0.5-1.5%
• •Track all three metrics: logo churn (misleading for revenue), gross MRR churn (true top-line impact), net MRR churn (founder survival indicator)
• •5% monthly churn compounds to 45% annual revenue loss; net negative churn (expansion exceeding losses) unlocks organic scaling for bootstrapped companies

Generated with AI, which can make mistakes.