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Part of What is a good SaaS churn rate in the UK? Benchmarks by industry
What is a good SaaS churn rate in the UK? Benchmarks by industry
UK SaaS churn benchmarks by industry, with published ranges from ChartMogul, Baremetrics, ProfitWell, Recurly and SaaS Capital, plus how to set your own targets.
What to take away
- UK-specific public churn data is thin. The ONS publishes digital economy data, but not churn rates by sector.
- Named vendors publish monthly and annual ranges. Use them as a starting point, then match your contract length and customer size.
- A good churn rate beats your own cohort after matching contract length, customer size and acquisition channel.
- Sector matters. Monthly self-serve tools often churn at 4 to 7 per cent monthly. Enterprise platforms often churn below 1 per cent monthly.
- Track gross churn and net revenue churn separately. A low logo churn can hide high revenue churn.
Why UK churn benchmarks are hard to pin down
The phrase SaaS churn benchmark sounds precise. In practice, published figures mix definitions. Some count logos, some count revenue, some count users. A monthly churn figure means little unless you know what was counted and when. Churn rate is usually calculated as lost customers divided by customers at the start of a period, as set out in the standard definition of churn rate.
UK-specific public data is thin. The ONS digital economy pages track ICT activity and e-commerce, but they do not publish SaaS churn by industry. So any UK benchmark you see is likely a vendor survey, an investor report or an internal cohort. Treat it as a hypothesis, not a target.
Data protection also shapes what you can measure. If you use customer data to predict churn, you need a lawful basis and clear retention rules. The ICO guidance hub explains UK GDPR obligations for organisations.
Published SaaS churn benchmarks by industry
These ranges come from named benchmark reports. They are not official UK statistics. Check the sample, date and definition before you use them.
Churn benchmarks by sector
Sector
- Horizontal software
- 1% to 2%
- Vertical software
- 1.5% to 2.5%
- SMB productivity tools
- 4% to 7%
- Enterprise platforms
- 0.5% to 1%
- Fintech and regulated SaaS
- 1% to 2%
- Healthcare and public sector
- 0.8% to 1.5%
- Martech and adtech
- 3% to 6%
Monthly logo churn
- Horizontal software
- 10% to 15%
- Vertical software
- 12% to 18%
- SMB productivity tools
- 35% to 50%
- Enterprise platforms
- 5% to 10%
- Fintech and regulated SaaS
- 8% to 14%
- Healthcare and public sector
- 6% to 12%
- Martech and adtech
- 25% to 40%
Annual revenue churn
- Horizontal software
- Vertical software
- SMB productivity tools
- Enterprise platforms
- Fintech and regulated SaaS
- Healthcare and public sector
- Martech and adtech
Published SaaS churn benchmarks
| Sector | Common monthly logo churn | Common annual revenue churn | Named sources to check |
|---|---|---|---|
| Horizontal software | 1% to 2% | 10% to 15% | SaaS Capital, ChartMogul |
| Vertical software | 1.5% to 2.5% | 12% to 18% | OpenView, KeyBanc |
| SMB productivity tools | 4% to 7% | 35% to 50% | ProfitWell, Baremetrics |
| Enterprise platforms | 0.5% to 1% | 5% to 10% | SaaS Capital, KeyBanc |
| Fintech and regulated SaaS | 1% to 2% | 8% to 14% | ChartMogul, Recurly |
| Healthcare and public sector | 0.8% to 1.5% | 6% to 12% | OpenView, KeyBanc |
| Martech and adtech | 3% to 6% | 25% to 40% | Baremetrics, ProfitWell |
UK SaaS teams often sit between these global ranges. A UK fintech with annual contracts should aim nearer the lower end. A UK SMB tool with monthly billing should expect the higher end.
Benchmarks by company size and contract length
Company size changes churn more than sector. Micro businesses close or pause quickly. They may churn because the founder changes priority, not because the product failed. Mid-market customers churn when a champion leaves or a budget is cut. Enterprise customers churn slowly, but the revenue impact is larger when they do.
Contract length is the next filter. Monthly rolling contracts produce higher logo churn by design. Annual contracts hide churn until renewal. Multi-year contracts push the decision to a small number of dates. Compare monthly churn only with monthly contracts. Compare annual retention only with annual contracts. Use retention metrics for UK B2B teams to see whether churn is a logo problem, a revenue problem or both.
Named sources and tools to check
Named sources and tools
- ChartMogulsubscription analytics for Stripe, Braintree and Recurly. It publishes a SaaS Retention Report. It has a free tier for small MRR.
- Baremetricssubscription analytics and churn dashboards. Paid plans start around $50 monthly. It publishes churn benchmarks.
- ProfitWell from Paddlefree subscription analytics. It publishes SaaS benchmarks. Paid Paddle billing uses a revenue share model.
- Recurlysubscription management and billing. It publishes the State of Subscriptions report. Pricing is quote based.
- SaaS Capitalprovides debt finance and publishes SaaS retention benchmarks. Its reports are free.
- OpenView Partnersventure firm that publishes the SaaS Benchmarks Survey. The report is free.
- KeyBanc Capital Marketsinvestment bank that publishes an annual SaaS Survey. The summary is free.
A numbered process to set your own UK benchmark
Set your own UK benchmark
- Define churn. Choose logo churn, gross revenue churn or net revenue churn. Write the formula in your dashboard.
- Pick a cohort window. Use monthly cohorts for self-serve and annual cohorts for contracted accounts.
- Segment by sector, company size and contract length. Do not blend them into one number.
- Remove one-off closures and failed startups from your benchmark. They distort the picture.
- Set a floor and a target. The floor is your current worst acceptable cohort. The target is a realistic improvement for the next two quarters.
- Review quarterly. Update the benchmark when pricing, packaging or onboarding changes.
Once you have a baseline, the next step is to reduce SaaS churn with practical steps.
Set your own UK benchmark
- Define churnlogo, gross revenue or net revenue
- Pick cohort windowmonthly or annual
- Segment by sector, size and contract length
- Remove one-off closures and failed startups
- Set a floor and a target
- Review quarterly and update after changes
Common questions
What is a good SaaS churn rate in the UK?
There is no official UK figure. Published ranges often sit between 1 and 2 per cent monthly for enterprise platforms and 4 to 7 per cent monthly for SMB self-serve tools. A good rate still beats your own matched cohort.
Does churn rate vary by industry in the UK?
Yes. Contract length, buyer type and regulatory cycle all change the pattern. Compare your sector and contract type, not a single national average.
Should I use monthly or annual churn?
Use the billing period that matches your contracts. Monthly churn for monthly contracts, annual churn for annual contracts. Mixing them makes the number meaningless.
How do I find UK-specific churn data?
Start with your own billing system. ONS digital economy data gives context but not churn rates. Vendor reports from ChartMogul, Baremetrics, ProfitWell, Recurly and SaaS Capital can help. Check the sample, date and definition.
