B2B SaaS Churn Rate by ACV Segment
How deal size drives retention: data from 939 B2B SaaS companies (Q1-Q3 2025)
B2B SaaS monthly churn rate varies dramatically by ACV: SMB (<$10K) averages 4.2%, Mid-Market ($10K-$50K) 2.1%, and Enterprise (>$100K) just 0.7%. For every $25K increase in ACV, monthly churn drops ~0.8 percentage points. The steepest improvement occurs at the $10K ACV threshold, where dedicated sales engagement and annual contracts become standard (Optifai Pipeline Study, 2026, N=939 B2B SaaS companies with CRM-verified churn data).
B2B SaaS monthly churn rate varies dramatically by ACV segment: SMB (<$10K) averages 4.2%, Mid-Market ($10K-$50K) 2.1%, Upper Mid-Market ($50K-$100K) 1.3%, and Enterprise (>$100K) just 0.7%. For every $25K increase in ACV, monthly churn drops ~0.8 percentage points. The steepest improvement occurs at the $10K threshold where dedicated sales engagement becomes standard. Source: Optifai Sales Ops Benchmark (N=939 companies, Q1-Q3 2025)
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Key Findings
Source: Optifai Pipeline Study (2026, N=939 B2B SaaS companies).
Churn Rate by ACV Segment
| ACV Segment | Monthly Logo Churn | Monthly Revenue Churn | Annual Logo Churn |
|---|---|---|---|
| <$10K (SMB) | 4.2% | 3.8% | 40.3% |
| $10K-$50K (Mid-Market) | 2.1% | 1.7% | 22.5% |
| $50K-$100K (Upper Mid) | 1.3% | 0.9% | 14.5% |
| >$100K (Enterprise) | 0.7% | 0.4% | 8.1% |
Source: Optifai Pipeline Study (2026, N=939 B2B SaaS companies). Annual churn is compounded, not multiplied by 12.
The $10K Threshold Effect
For every $25K increase in ACV, monthly churn drops approximately 0.8 percentage points. However, the relationship is not linear. The largest single drop occurs at the $10K ACV threshold, where monthly churn falls from 4.2% to 2.1% -- a 2.1 percentage point improvement.
Churn Rate by Sales Motion
Sales motion correlates strongly with churn, partly because it correlates with ACV. Product-led growth (PLG) companies tend to serve SMB segments with lower ACVs, while sales-led motions serve higher-ACV accounts with more touchpoints and stickier implementations.
Source: Optifai Pipeline Study (2026, N=939 B2B SaaS companies).
Why Higher ACV Means Lower Churn
- Switching costs rise with ACV: Enterprise contracts involve deeper integrations, custom configurations, and data migrations that make switching painful. A $100K+ implementation creates natural lock-in that a $5K self-serve subscription does not.
- Implementation investment creates stickiness: Higher-ACV deals typically involve 30-90 day implementations with dedicated onboarding teams. Customers who invest weeks in setup are far less likely to abandon the product within the first year.
- Dedicated customer success: Enterprise accounts justify dedicated CSMs who proactively address issues before they become churn risks. SMB accounts often rely on self-serve support, leaving problems unresolved until cancellation.
- Annual contracts as a structural advantage: 85% of deals above $50K ACV are sold on annual or multi-year contracts, creating natural retention floors. Below $10K, month-to-month billing is common, allowing frictionless cancellation.
- Multi-stakeholder decision-making: Enterprise purchases involve procurement, legal, and executive sign-off. The same bureaucratic friction that slows buying also slows churning -- cancellation requires the same approval chain.
Source: Optifai Pipeline Study (2026, N=939 B2B SaaS companies).
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Methodology
This analysis segments churn data from 939 B2B companies by annual contract value (ACV) tier using CRM deal size fields between Q1-Q3 2025. Logo churn = customers lost / starting customers. Revenue churn = MRR lost / starting MRR. Both exclude expansion revenue.
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Update History
Data last updated: February 16, 2026
- ✓Evergreen formatting: titles and headings no longer include year references
- ✓Metadata centralized for consistency across all benchmark pages
- ✓Initial release of churn rate by ACV segment analysis
- ✓ACV segmentation with logo and revenue churn data (N=939 companies)
Regularly updated with latest industry data
Optifai Research Team
VerifiedLed by Yusuke Onishi (Founder & CEO) with 15+ years of B2B sales operations experience. Our research team analyzes pipeline data from 939+ companies to deliver actionable benchmarks for sales leaders.