← GlossaryUnit economics
Churn Rate
Churn rate is the percentage of customers (or revenue) lost in a given period. Customer churn measures logo loss; revenue churn measures dollar loss; net revenue churn subtracts expansion from gross churn. SaaS benchmarks in 2026: best-in-class SMB SaaS runs 1-2% monthly logo churn, enterprise SaaS runs 0.5-1% monthly, anything above 5% monthly indicates fit problems.
Related terms
Other unit economics terms.
CAC
Total marketing + sales spend divided by new customers acquired.
LTV
Total value a customer delivers over the duration of their relationship.
AOV
Total revenue divided by total orders for a period.
MRR
Total predictable monthly subscription revenue across all active customers.
ARR
MRR multiplied by 12 — the annualized run rate of subscription revenue.
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