# SaaS Industry Benchmarks

Industry-standard benchmark ranges for SaaS metrics, segmented by company stage and market segment.

**Sources:**
- OpenView SaaS Benchmarks 2024
- Bessemer Venture Partners Cloud Index
- SaaS Capital Index
- Paddle SaaS Metrics Report 2025

**Last updated:** March 2026

## Stage Definitions

- Early: < $1M ARR
- Growth: $1M–$10M ARR
- Scale: $10M–$50M ARR
- Late: $50M+ ARR

---

## Monthly Churn Rate

| Segment | CRITICAL | WATCH | HEALTHY |
|---|---|---|---|
| Enterprise (ACV > $25k) | > 3% | 1–3% | < 1% |
| Mid-Market ($5k–$25k ACV) | > 5% | 2–5% | < 2% |
| SMB / PLG (< $5k ACV) | > 8% | 4–8% | < 4% |
| Consumer | > 10% | 5–10% | < 5% |

## LTV:CAC Ratio

| Status | Range |
|---|---|
| CRITICAL | < 1:1 — losing money on every customer |
| POOR | 1:1–2:1 — barely breaking even |
| WATCH | 2:1–3:1 — marginally viable |
| HEALTHY | 3:1–5:1 — industry standard |
| EXCELLENT | > 5:1 — strong unit economics |
| WATCH | > 8:1 — possibly under-investing in growth |

## CAC Payback Period

| Status | Range |
|---|---|
| CRITICAL | > 24 months |
| WATCH | 18–24 months |
| HEALTHY | 12–18 months |
| GOOD | 6–12 months |
| EXCELLENT | < 6 months (PLG indicator) |

## NRR (Net Revenue Retention)

| Status | Range |
|---|---|
| CRITICAL | < 80% — revenue shrinking from existing base |
| POOR | 80–90% |
| WATCH | 90–100% — flat, not expanding |
| HEALTHY | 100–110% |
| EXCELLENT | 110–120% |
| WORLD-CLASS | > 120% (Snowflake / Datadog territory) |

## MoM MRR Growth

| Stage | CRITICAL | WATCH | HEALTHY | EXCELLENT |
|---|---|---|---|---|
| Early (< $1M ARR) | < 5% | 5–10% | 10–20% | > 20% |
| Growth ($1M–$10M) | < 3% | 3–7% | 7–15% | > 15% |
| Scale ($10M+) | < 1% | 1–3% | 3–7% | > 7% |

## Gross Margin

| Status | Range |
|---|---|
| CRITICAL | < 50% |
| WATCH | 50–65% |
| HEALTHY | 65–75% |
| EXCELLENT | 75–85% |
| WORLD-CLASS | > 85% (API / infrastructure businesses) |

## Rule of 40

| Score | Status |
|---|---|
| < 20 | CONCERNING |
| 20–40 | DEVELOPING |
| 40–60 | HEALTHY |
| > 60 | EXCELLENT |

## Quick Reference Card

```
Metric          Must Hit    Good        Great
---------------------------------------------
Monthly Churn   < 5%        < 3%        < 1%
LTV:CAC         > 3:1       > 4:1       > 5:1
CAC Payback     < 18 mo     < 12 mo     < 6 mo
NRR             > 100%      > 110%      > 120%
Gross Margin    > 65%       > 75%       > 80%
MoM Growth      > 5%        > 10%       > 15%
```
