Churn RateSaaSPre-Seed

Churn Rate for SaaS at Pre-Seed (Advertising)

2026 data · Sample size: 123 · Source: Lenny Rachitsky Newsletter Benchmarks

25th %ile

8.9%

Median

7.4%

75th %ile

6.2%

90th %ile

5.5%

▼Trending down year-over-year

About This Metric

Percentage of customers or revenue lost during a given period. The inverse of retention.

Customers Lost / Starting Customers × 100

Lower is better · Unit: percentage

How to Improve

Implement a 90-day onboarding program with milestone check-ins. Build health scoring that predicts churn 60 days out. Create switching costs through integrations and data lock-in.

Ehsan's Analysis

SaaS churn at Pre-Seed stage tells you everything about product-market fit. Monthly churn above 4% means you are filling a leaky bucket. The companies I advise that get below 2% all implement one practice: structured onboarding with day-1, day-7, and day-30 milestones. If you cannot name your three activation events, you have not earned the right to spend on acquisition.

Ehsan Jahandarpour

AI Growth Strategist & Fractional CMO

Forbes Top 20 Growth Hacker · TEDx Speaker · 716 Academic Citations · Ex-Microsoft · CMO at FirstWave (ASX:FCT) · Forbes Communications Council

Frequently Asked Questions

What is a good Churn Rate for SaaS at Pre-Seed?

The median Churn Rate is 7.4%. Top-quartile companies achieve 6.2%. Aim for top-quartile to be competitive.

How does Churn Rate change by company stage?

Churn Rate decreases as companies mature. Earlier-stage companies typically see higher values due to smaller scale.

How to improve Churn Rate in SaaS?

Focus on the primary drivers specific to SaaS. Track weekly with a 4-week rolling average and iterate on the biggest lever.