Alp SuleimanGrowth Partner

Benchmarks

What is a good retention rate?

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Short answer

Good retention depends on the kind of business. According to Lenny Rachitsky's compilation of practitioner views, the share of users still active at month 6 counts as good at roughly 25% for consumer social products and roughly 70% for enterprise SaaS. Private B2B SaaS companies show a median gross revenue retention of 91%. Reference points, not targets.

Ranges by segment

SegmentRangeContext
Consumer socialGood ~25% · great ~45%1Share of registered users still active at month 6.
Consumer transactionalGood ~30% · great ~50%1Products where users transact, such as commerce or rides; month 6.
Consumer SaaSGood ~40% · great ~70%1Software that individuals subscribe to; month 6.
SMB / mid-market SaaSGood ~60% · great ~80%1User retention at month 6.
Enterprise SaaSGood ~70% · great ~90%1User retention at month 6.
Private B2B SaaS, all companiesMedian gross revenue retention 91%2Revenue-based, one-year cohort; 2025 survey.
Private B2B SaaS, ACV above $250kMedian gross revenue retention 95%2Companies below $250k show a median of about 91%.

Reminder: These ranges are reference points, not targets. Your segment, contract structure and stage change the number.

Retention rate

How to read it

  • The denominator differs: in Lenny's table it is registered users, in SaaS Capital it is customers who generated revenue a year earlier. Do not mix the two ranges.
  • Measure your own number with the same definition first, then compare only with the row of your segment. About 25% is good for a consumer social product; the same number in enterprise SaaS is an alarm.
  • SaaS Capital calls gross revenue retention table stakes: at least 90% to have a shot at performance parity with peers. A higher figure alone does not explain growth.

What moves this metric

  • 01

    Time to first value

    The moment a user first thinks it works. Shortening onboarding to reach it reduces the losses of the first weeks.

  • 02

    Usage frequency

    The natural rhythm of the product. A product serving a weekly need draws a different retention curve than one used once a year.

  • 03

    Acquisition quality

    A channel that brings the wrong customers drags retention down. Compare channels by cohort.

  • 04

    Price and contract

    Contract length and packaging affect staying. In SaaS Capital's data multi-year contracts sit above the overall median.

Calculate your own

Growth check-upGlossary term: Retention rate →

Frequently asked

Are retention and churn the same thing?

They are complements. Retention is the share that stays, churn the share that leaves. 90% retention means 10% churn, but both must be measured on the same cohort and definition.

Over which period should I measure retention?

By the natural usage rhythm of the product. Lenny's benchmark uses month 6, SaaS Capital a one-year cohort. What matters is keeping the definition fixed and tracking your own curve over time.

My number is below the 'good' in the table. What now?

First make sure you are looking at the right segment. Then isolate which cohorts and channels the losses concentrate in. A benchmark is not a diagnosis; it tells you where to look.

Sources

  1. 1.Lenny Rachitsky, “What is good retention?” (Lenny's Newsletter, 20 growth practitioners plus public company data)Year and scope: 2020. User retention: share of signups still active after 6 months. Net revenue retention: 12-month. Consumer and B2B SaaS categories.
  2. 2.SaaS Capital, 2025 B2B SaaS Retention Benchmarks (Research Brief 32)Year and scope: 2025. 1,000+ private B2B SaaS companies ($1M+ ARR), December 2023 to December 2024 customer cohort. Medians by ACV, contract length and funding type.