SaaS Industry Benchmarks 2026: 45+ Stats on Growth and Margins

SaaS industry benchmarks for 2026 start with 22% median growth for private B2B SaaS in 2025, down from 25% (SaaS Capital, Aug 2026). Retention held near par: 102% median net revenue retention in 2025 (Aleph, Jun 2026, vendor data). Acquisition got cheaper: $1.63 of S&M per $1.00 of new-customer ARR, median in 2025 (Aleph, Jun 2026, vendor data).

Growth slowed and gross retention slipped in 2025, while sales efficiency and the Rule of 40 improved. Below are 45+ stats from original publishers’ SaaS benchmark reports, checked in November 2026, with data from 2023 or later. Every number links to its source, so the figures are free to cite.

Key SaaS Industry Benchmarks for 2026

These SaaS metrics benchmarks, one per category, each come from the original publisher of the number.

Category	Statistic	Source
Median growth, private B2B SaaS	22% median growth for private B2B SaaS in 2025, down from 25%	SaaS Capital, Aug 2026
Growth, bootstrapped vs equity-backed	20% median growth for bootstrapped vs 25% for equity-backed SaaS in 2025	SaaS Capital, Aug 2026
Net revenue retention	102% median net revenue retention in 2025	Aleph, Jun 2026, vendor data
Gross revenue retention	84% median gross revenue retention in 2025, down from 88%	Aleph, Jun 2026, vendor data
Expansion share of new ARR	40% of new ARR comes from expansion, over 50% above $50M ARR, in 2024	Benchmarkit, May 2025
New CAC ratio	$1.63 of S&M per $1.00 of new-customer ARR, median in 2025	Aleph, Jun 2026, vendor data
CAC payback	16 months median CAC payback in 2025, down from 18	Aleph, Jun 2026, small sample (n = 198 companies)
Magic number	1.37 median magic number in 2025, up from 0.94	Aleph, Jun 2026, small sample (n = 132 companies)
Software gross margin	80% median software gross margin in 2025; total-revenue margin 76%	Aleph, Jun 2026, small sample (n = 228 to 232 companies)
Sales and marketing share of revenue	35% S&M, 27% R&D and 17% G&A as share of revenue in 2025	Aleph, Jun 2026, vendor data
Rule of 40	25% median Rule of 40 in 2025, up from 15%; top quartile 43%	Aleph, Jun 2026, vendor data
ARR per employee	$193K median ARR per employee in 2025, up 29% from $150K	Aleph, Jun 2026, small sample (n = 96 companies)
Burn multiple	Median burn multiple falls from 2.7 under $1M ARR to 1.0 at $20M to $50M ARR in 2024	Drivetrain, Aug 2025, vendor data
Free-to-paid conversion	8% median free-to-paid conversion across 200 software products in 2026	ChartMogul, Feb 2026, small sample (n = 200 products)

Vendor data, predictions and small samples are labelled, and small samples are read as directional.

Definitions differ between publishers: CAC ratio and CAC payback measure different things, and the Rule of 40 uses EBITDA or free cash flow.

The SaaS Benchmarks That Matter Most in 2026

Six SaaS company benchmarks cover growth, retention, CAC payback, gross margin, spend and efficiency.

They draw on SaaS Capital, Aleph x Benchmarkit, Benchmarkit, Drivetrain, OPEXEngine and Aventis Advisors.

What Is the Average SaaS Growth Rate?

The average SaaS growth rate is a median, not a mean. 22% median growth for private B2B SaaS in 2025, down from 25% (SaaS Capital, Aug 2026).

The table adds other cuts and the share of companies that did not grow, which is a share, not a growth rate.

Statistic	Source
20% median growth in 2025, down from 26%, in Aleph x Benchmarkit data	Aleph, Jun 2026, vendor data
25% median growth in 2024, down from 30% in 2023 (private B2B SaaS)	SaaS Capital, Jun 2025
26% median growth in 2024; top quartile fell from 60% to 50%	Benchmarkit, May 2025, small sample (n = 149 companies)
7.3% of private SaaS companies had flat or negative growth in 2025	SaaS Capital, Aug 2026

Takeaway: The 22% and 20% medians differ by sample, because SaaS Capital surveys private B2B companies while Aleph x Benchmarkit counts its own participants. Use the figure whose sample looks most like your company.

What Are Good Net Revenue Retention and Churn Rates?

Good net revenue retention (NRR) sits above 100%. Net revenue retention benchmarks for 2025 clear that bar: 102% median net revenue retention in 2025 (Aleph, Jun 2026, vendor data). Gross retention was lower: 84% median gross revenue retention in 2025, down from 88% (Aleph, Jun 2026, vendor data).

SaaS Capital defines NRR and GRR on a December-to-December customer cohort (SaaS Capital, Sep 2025). Annual revenue churn is one minus gross revenue retention, worked out in dollars in the table’s last row. Each of the core retention metrics for SaaS has its formula worked through in our guide. NRR also trends upward with contract value.

Statistic	Source
NRR of 98% below $12k ACV rising to 106% above $250k in 2024	SaaS Capital, Sep 2025
108% median NRR for usage-based vs 98% for seat-based companies in 2025	Benchmarkit, Jun 2026
16% of ARR lost a year at the 84% median GRR, $1.6M on $10M ARR	Our calculation from Aleph, Jun 2026 figures

SaaS Capital’s chart links retention to growth by NRR band. Our guide to the net revenue retention formula shows how NRR itself is calculated.

NRR band	Median growth	Source
Below 90% NRR	15%	SaaS Capital, Sep 2025
90% to 100% NRR	16%	SaaS Capital, Sep 2025
100% to 110% NRR	21%	SaaS Capital, Sep 2025
110% to 120% NRR	30%	SaaS Capital, Sep 2025
120% to 130% NRR	38%	SaaS Capital, Sep 2025
Above 130% NRR	50%	SaaS Capital, Sep 2025

Median growth rises from 15% to 50% as net revenue retention climbs

companies above $1M ARR, SaaS Capital survey

Item	companies above $1M ARR, SaaS Capital survey
Below 90% NRR	15%
90% to 100% NRR	16%
100% to 110% NRR	21%
110% to 120% NRR	30%
120% to 130% NRR	38%
Above 130% NRR	50%

0% 20% 40% 60%

15%

16%

21%

30%

38%

50%

Below 90% NRR90% to 100% NRR100% to 110% NRR110% to 120% NRR120% to 130% NRRAbove 130% NRR

Takeaway: Higher NRR goes with faster growth, but the data shows correlation, not cause. The ChartMogul platform figure in the FAQ is lower because it measures a different customer base.

What Is a Good CAC Payback and Magic Number?

A good CAC payback is 16 months or less, the 2025 median (Aleph, Jun 2026, small sample (n = 198 companies)). It fell from 18 months in 2024.

The B2B SaaS CAC benchmark most reports use is the new-customer CAC ratio. For a single paid channel, the break-even ROAS calculator for ads shows the minimum return. It divides sales and marketing spend by new ARR. $1.63 of S&M per $1.00 of new-customer ARR, median in 2025 (Aleph, Jun 2026, vendor data).

Payback divides prior-period sales and marketing spend by new ARR times gross margin.

• By contract value: 11 months median payback under $5K ACV vs 22 months at $50K to $100K (Aleph, Jun 2026, small sample (n = 198 companies))
• SaaS magic number benchmark: 1.37 median magic number in 2025, up from 0.94 (Aleph, Jun 2026, small sample (n = 132 companies))

Takeaway: Compare your payback with your contract-value band, not the all-company median, because both medians rest on small samples and are directional.

What Is a Good SaaS Gross Margin?

SaaS gross margin benchmarks put a good result at 80% or more on software revenue, with the top quartile at 86% or higher.

80% median software gross margin in 2025; total-revenue margin 76% (Aleph, Jun 2026, small sample (n = 228 to 232 companies)).

Statistic	Source
62% median software gross margin for usage-only pricing vs 76% to 84% for subscription	Aleph, Jun 2026, small sample (n = 228 to 232 companies)
79% to 81% median software gross margin in all four years; no AI compression proven	Aleph, Jun 2026, vendor data
Gross margins down nearly 10 points year on year for early-stage companies in 2025	Growth Unhinged, Nov 2025

Takeaway: The full sample shows no AI compression while one cohort of early-stage companies does, and the AI cause is the author’s reading. Check your own hosting and inference cost before assuming either.

How Much Do SaaS Companies Spend on Sales, Marketing and R&D?

SaaS Capital measured spend by function for private B2B companies. Median spend in 2026: 15% of ARR on selling, 8% on marketing, 22% on R&D, 15% on G&A (SaaS Capital, Jun 2026).

• 35% S&M, 27% R&D and 17% G&A as share of revenue in 2025 (Aleph, Jun 2026, vendor data)
• 83% of bootstrapped vs 52% of equity-backed companies at breakeven or profitable (SaaS Capital, Jun 2026)

Takeaway: Spend shares measured on ARR and on revenue are not interchangeable, so compare with the basis your finance team reports.

How Efficient Is the Typical SaaS Company?

Efficiency is measured by the Rule of 40, which adds growth rate and profit margin.

25% median Rule of 40 in 2025, up from 15%; top quartile 43% (Aleph, Jun 2026, vendor data).

Statistic	Source
$175K median ARR per employee in 2025, up 17%	Benchmarkit, Jun 2026
$193K median ARR per employee in 2025, up 29% from $150K	Aleph, Jun 2026, small sample (n = 96 companies)
22.6% median public Rule of 40 on an EBITDA basis in 2026; 8 of 55 pass	Aventis Advisors, May 2026, small sample (n = 55 listed companies)
39.1% median public Rule of 40 on a free-cash-flow basis in 2026; 25 of 55 pass	Aventis Advisors, May 2026, small sample (n = 55 listed companies)
16.5 points between the FCF-basis and EBITDA-basis public Rule of 40 medians	Our calculation from Aventis Advisors, May 2026 figures

Takeaway: The public gap comes from the margin basis, not the companies. The two ARR-per-employee figures differ because Aleph’s $193K rests on 96 respondents while the sample behind Benchmarkit’s $175K is not stated. State which basis your own score uses before comparing.

B2B SaaS Benchmarks by Funding and Pricing Model

B2B SaaS benchmarks shift with funding model and pricing model. 20% median growth for bootstrapped vs 25% for equity-backed SaaS in 2025 (SaaS Capital, Aug 2026). Pricing cuts disagree across publishers.

Segment	Statistic	Source
Bootstrapped vs equity-backed	20% median growth for bootstrapped vs 25% for equity-backed SaaS in 2025	SaaS Capital, Aug 2026
Usage-based vs subscription pricing	44% median growth for usage-based pricing vs 25% for subscription in 2024	Drivetrain, Aug 2025, vendor data
VC-backed vs PE-backed	30% median growth for VC-backed vs 13% for PE-backed companies in 2024	Drivetrain, Aug 2025, vendor data

Takeaway: Usage-based, subscription and hybrid cuts come from different years, definitions and samples, so read each row on its own.

SaaS Benchmarks by Company Size

The SaaS growth rate depends on company size, and each source cuts the size bands differently. Each block below cites one source and says which bands it used.

1. Under $5M ARR (non-AI-native companies): 75% median growth under $1M and 40% at $1M to $5M (Growth Unhinged, Nov 2025)
2. $5M to $20M ARR: 24% median growth at $5M to $10M and 20% at $10M to $20M (SaaS Capital, Jun 2025)
3. $20M to $50M ARR: median Rule of 40 of 20%, the peak (Drivetrain, Aug 2025, vendor data)
4. $50M to $100M ARR: 40% of new ARR comes from expansion, over 50% above $50M ARR, in 2024 (Benchmarkit, May 2025)
5. $100M to $500M ARR: 11% median revenue growth (OPEXEngine, May 2026, vendor data)
6. Above $500M ARR and public companies: 13.3% median trailing-twelve-month growth for the SEG public SaaS Index (Software Equity Group, Sep 2026)

#1 Under $5M ARR

Among non-AI-native B2B SaaS companies, growth is highest and widest at the earliest stage. Median growth by ARR band: 75% under $1M, 40% at $1-5M, 15% above $50M (Growth Unhinged, Nov 2025). Billings tell a different story: 0.3% median growth at $1M-$5M billings vs 9.3% from $5M (Maxio, Sep 2026, vendor data).

Takeaway: A survey of revenue growth and billings growth on one platform measure different things, so an early-stage company should expect a wide range.

#2 $5M to $20M ARR

In SaaS Capital’s 2024 bands, median growth settles at 24% at $5M to $10M ARR and 20% at $10M to $20M ARR.

Median growth of 40% under $1M ARR falling to 20% above $20M, by band (SaaS Capital, Jun 2025).

ARR band	Median growth	Source
Under $1M ARR	40%	SaaS Capital, Jun 2025
$1M to $3M ARR	28%	SaaS Capital, Jun 2025
$3M to $5M ARR	24%	SaaS Capital, Jun 2025
$5M to $10M ARR	24%	SaaS Capital, Jun 2025
$10M to $20M ARR	20%	SaaS Capital, Jun 2025
Above $20M ARR	20%	SaaS Capital, Jun 2025

Median growth falls from 40% under $1M ARR to 20% above $20M

median growth in 2024 by ARR band, SaaS Capital survey

Item	median growth in 2024 by ARR band, SaaS Capital survey
Under $1M ARR	40%
$1M to $3M ARR	28%
$3M to $5M ARR	24%
$5M to $10M ARR	24%
$10M to $20M ARR	20%
Above $20M ARR	20%

0% 10% 20% 30% 40%

40%

28%

24%

24%

20%

20%

Under $1M ARR$1M to $3M ARR$3M to $5M ARR$5M to $10M ARR$10M to $20M ARRAbove $20M ARR

Takeaway: The 2024 SaaS Capital bands and the 2025 Growth Unhinged bands differ in year and sample, so do not subtract one from the other.

#3 $20M to $50M ARR

Efficiency peaks at this size. Median Rule of 40 peaks at 20% at $20M to $50M ARR, then falls to 5% above $100M, in 2024 (Drivetrain, Aug 2025, vendor data). Burn multiple follows the same path. Median burn multiple falls from 2.7 under $1M ARR to 1.0 at $20M to $50M ARR in 2024 (Drivetrain, Aug 2025, vendor data).

Takeaway: Growth cools at this stage while the Rule of 40 peaks. Read it with burn multiple before choosing growth or margin as the lever.

#4 $50M to $100M ARR

One Benchmarkit report on 2024 data shows expansion carrying more of growth at this size. 40% of new ARR comes from expansion, over 50% above $50M ARR, in 2024 (Benchmarkit, May 2025).

Software gross margin rises from 72% under $5M ARR to 86% at $50M-$100M (Aleph, Jun 2026, small sample (n = 228 to 232 companies)).

Takeaway: Plan more of next year’s growth from existing customers at this size, because expansion already carries most new ARR.

#5 $100M to $500M ARR

Growth slows again at larger sizes: Revenue growth of 18% at $10M-$50M, 14% at $50M-$100M, 11% at $100M-$500M (OPEXEngine, May 2026, vendor data).

EBITDA margin turns positive only above $50M in revenue, as the table shows.

Revenue cohort	EBITDA margin	Source
$10M to $50M	-4%	OPEXEngine, May 2026, vendor data
$50M to $100M	1%	OPEXEngine, May 2026, vendor data
$100M to $500M	14%	OPEXEngine, May 2026, vendor data
$500M to $1B	29%	OPEXEngine, May 2026, vendor data

Takeaway: OPEXEngine’s EBITDA margins come from one database, so the cohorts compare cleanly; operating margin sits lower and is not shown here.

#6 Above $500M ARR and Public Companies

Public SaaS growth depends on the window measured. 13.3% median trailing-twelve-month growth for the SEG public SaaS Index (Software Equity Group, Sep 2026). Quarterly growth also slowed: 11.8% median quarterly revenue growth for listed SaaS in Q2 2026, down from 14.0% (Aventis Advisors, Aug 2026).

Takeaway: The two public numbers use different windows and index sets, so read each on its own and do not average them.

What to Do If Your Numbers Look Like These

Seven signals can be checked in your own data, each tied to a stat on this page.

Signal	What to do first	The stat behind it
Your growth is below the median for your ARR band and your net revenue retention is under 100%	Read net and gross retention by customer cohort before you add acquisition spend	Companies with 100% to 110% NRR grow a median 5 points faster than those at 90% to 100% (SaaS Capital, Aug 2026)
Your new-customer CAC ratio is above the median	Work out the new-customer ratio on its own, not blended with expansion, and compare the two	$1.63 of S&M per $1.00 of new-customer ARR, median in 2025 (Aleph, Jun 2026, vendor data)
Your CAC payback is longer than the median for your contract value	Recompute payback adjusted for gross margin (worked example below) and compare it with your contract-value band, not the all-company median	16 months median CAC payback in 2025, down from 18 (Aleph, Jun 2026, small sample (n = 198 companies))
Your software gross margin is below the median for your ARR band	Split hosting, support and services cost from subscription cost and compare subscription margin with your band	Software gross margin rises from 72% under $5M ARR to 86% at $50M-$100M (Aleph, Jun 2026, small sample (n = 228 to 232 companies))
Your gross revenue retention is below the median	Find which customer cohorts lose the ARR before you change the sales plan	84% median gross revenue retention in 2025, down from 88% (Aleph, Jun 2026, vendor data)
Your Rule of 40 score is below the median, or your burn multiple is above your band’s median	State which margin your score uses, EBITDA or free cash flow, before comparing, then pick growth or margin as the lever for your size	25% median Rule of 40 in 2025, up from 15%; top quartile 43% (Aleph, Jun 2026, vendor data)
Your sales and marketing share of revenue is above the median while your growth is below it	Check whether the spend buys new-customer ARR (signal 2) before you cut or add budget	35% S&M, 27% R&D and 17% G&A as share of revenue in 2025 (Aleph, Jun 2026, vendor data)

Worked example 1: payback adjusted for gross margin. In our calculation, 24.4 months payback at a $1.63 CAC ratio and 80% gross margin. The 16-month median in the table above is each company’s own payback. The 24.4 months combines two medians, so it illustrates the formula and is not a second benchmark.

We divided the median new-customer CAC ratio by the median software gross margin and multiplied by 12 months, using the figures shown above. Our CAC calculator runs the same payback on your own numbers.

Worked example 2: Rule of 40. In our calculation, Rule of 40 score of 18 at 22% growth and -4% EBITDA margin. It is an illustration for a company with those two values, not a measured company.

We added growth rate and EBITDA margin, the two Rule of 40 inputs, using the median growth and OPEXEngine cohort margin shown above.

SaaS Benchmark Stats You’ll See Quoted That Don’t Hold Up

These rules of thumb circulate without a study behind them or with outdated data. A monthly figure cannot stand in for an annual one: our calculation shows 5% monthly churn compounds to 46.0% a year.

The statistic	Where it circulates	What the trail shows
“CAC payback under 12 months is good”	drivetrain.ai, acquire.com, 8020consulting.com, klipfolio.com	Drivetrain repeats Benchmarkit’s “common wisdom” of about 12 months with no study behind it. Current data: Aleph x Benchmarkit’s 2026 median is 16 months. The traceable origin is David Skok’s 2013 SaaS Metrics 2.0, which calls it a guideline.
“LTV:CAC of 3:1 is the widely accepted benchmark”	acquire.com, klipfolio.com (8020consulting.com names the term)	None of the pages names a source. Current data: Aleph x Benchmarkit’s 2026 median is 4.1x, with a bottom quartile of 1.1x. The traceable origin is David Skok’s 2013 post, which, from his own model, puts healthy SaaS LTV:CAC “higher than 3”.
“Magic Number: 0.75 is the low-water mark, above 1.0 is ideal”	drivetrain (as “traditionally”) and Aleph’s 2026 page, which restates the same 0.75 and 1.0 bands as thumb rules	Drivetrain and Aleph restate the bands as thumb rules, and no study sets 0.75 or 1.0. Scale Venture Partners named the metric in 2005 and calls about 0.7x a “fairly healthy efficiency baseline”.
“CAC payback is about 10 months for lower-ARR and 15 months for higher-ARR companies (OpenView)”	klipfolio, scalexp (names OpenView 2023 and First Page Sage 2024, no link), productquant	No OpenView page carries these figures: the 2023 OpenView and Paddle report gives growth and headcount only, and it is now offline. The only traceable payback by ARR band is Bessemer’s 2021 average of 15 months at $1M to $10M ARR.
“Typical B2B SaaS lead-to-customer conversion is 1% to 5% or 5% to 10%”	adamfard (1% to 5%), 8020 (5% to 10%), The Digital Bloom’s 2025 roundup (2% to 5%)	Neither page names a source, and the two ranges contradict each other. The Digital Bloom’s figures match First Page Sage’s funnel data, pooled from 50+ agency clients over about a decade, repeated in its 2025 roundup.
“An annual churn rate of 5% to 7% is a good benchmark for established, enterprise-focused SaaS”	adamfard.com (no source named), insivia.com, several churn roundups	Adamfard names no source. Insivia calls 5% to 7% acceptable, citing Bessemer and Pacific Crest survey results, whose PDF was not opened. It is a rule of thumb, not a current median, from survey results of 2011 and 2012.
“Early-stage or SMB SaaS companies should expect churn of around 5% per month”	adamfard.com (b2b-saas-benchmarks), churn roundups	Adamfard’s FAQ names no source, and its own churn page gives 3% to 7% a month. Point Nine’s 2015 analysis of four older surveys is the earliest source found. Churn of 5% a month equals about 46% a year.
“Healthy SaaS businesses typically achieve 10% to 20% annual MRR growth”	8020consulting.com, plus calculators and blogs that restate the range	8020’s page names no source and calls its figures simplified illustrations. SaaS Capital’s medians of 25% in 2024 and 22% in 2025 sit above the range, as does every surveyed band above $5M. The claim carries no year.

What the 2026 SaaS Benchmarks Say

Growth slowed and gross retention slipped in 2025. Acquisition got more efficient, with a median new-customer CAC ratio of $1.63 per $1.00 of new ARR (Aleph, Jun 2026, vendor data). Margins improve with company size. Which of these three findings would your own data confirm first?