Monthly Churn Benchmark
Industry benchmark for monthly subscription churn rates.
1 min readLast updated Apr 2026
Quick Reference
CategoryKey Benchmarks Reference
Related Terms1
Industry benchmark for monthly subscription churn rates.
Why It Matters
Monthly churn compounds dramatically. 5% monthly churn means only 54% of subscribers remain after 12 months. Reducing churn has massive LTV impact.
Benchmarks
Good Performance
5%
Top Performers
2-3%
Practical Example
Scenario
A meal kit subscription evaluates their churn rate.
Calculation
Current: 7% monthly churn. At 1,000 subscribers, losing 70/month. At 4% target: lose 40/monthResult
Reducing from 7% to 4% would retain 360 more subscribers annually = $108K additional revenue at $25/month
Pro Tips
- 1Segment churn by cohort—month 1-2 churn is often 2-3x higher than month 6+ churn
- 2Calculate voluntary (canceled) vs. involuntary (payment failure) churn separately
- 3Offer pause option instead of cancel—many churned subscribers would have stayed with a break
Common Mistakes to Avoid
Comparing to B2B SaaS churn benchmarks (theirs is much lower, 1-2%)
Not addressing involuntary churn with dunning emails and retry logic
Ignoring early-stage churn patterns that indicate product-market fit issues