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ARR

How to Benchmark Your SaaS Growth Rate Against Similar-Stage Companies

A meaningful SaaS growth comparison matches your ARR scale and measurement period. See SaaS Capital’s stage-level medians for 2024 and overall 2025 survey results.

By TheFinanceBase Team 3 min read
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Compare your SaaS growth rate with private B2B SaaS companies in a similar annual recurring revenue (ARR) band, using the same growth definition and measurement period. A single SaaS-wide target can mislead: SaaS Capital’s 2025 survey found different median growth rates at different ARR scales, and its 2026 summary reports a newer overall median without an updated stage-by-stage table.

Start by defining what “growth” means

Before comparing percentages, write down exactly what your company’s rate measures. The stage-specific figures in SaaS Capital’s 2025 report are year-over-year growth rates grouped by ARR. Compare them with your own year-over-year ARR growth, measured over the same kind of period. If you instead track revenue growth or use different start and end dates, label that difference rather than presenting the rates as directly equivalent.

  • Metric: ARR growth or revenue growth.
  • Period: the start and end dates, and whether the comparison is year over year.
  • Company type: the benchmark covers private B2B SaaS companies; it is not automatically representative of consumer subscriptions or every software business.

SaaS Capital cautions that comparisons are relevant when businesses are similarly sized. Its 2025 report illustrates why: 25% growth was below the median for a $2 million ARR business but above the median for a $20 million ARR business. SaaS Capital, Research Brief 33: Growth (2025).

Choose the matching ARR band and survey year

For a stage comparison, use the ARR band closest to your company’s ARR and keep the benchmark year visible. The following medians are from SaaS Capital’s 2025 report and describe 2024 year-over-year growth—not 2025 results and not forecasts.

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ARR band Median year-over-year growth
Below $1 million 40%
$1–3 million 28%
$3–5 million 24%
$5–10 million 24%
$10–20 million 20%
Above $20 million 20%

These are survey medians for the respective ARR cohorts. They describe the middle of each group, not what a company should achieve. The sample comprised more than 1,000 private B2B SaaS companies, according to the report.

The newer SaaS Capital summary, published in 2026 for its 2025 survey, reports an overall median growth rate of 22%, down from 25% in 2024. It covers more than 1,000 private B2B SaaS companies but does not provide ARR-specific growth medians on that page. Use 22% as a newer broad reference, not as a replacement for a stage-specific comparison or as a figure contemporaneous with the 2024 ARR-band results. SaaS Capital, 2026 Private B2B SaaS Company Growth Rate Benchmarks.

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Use the median for typical performance, percentiles for context

A median helps answer how the middle company in a cohort performed. It does not define a target, a minimum acceptable rate, or a high-performance threshold. When percentile data is available, use it to see how wide the spread is and what distinguishes the upper part of the cohort.

SaaS Capital’s 2025 report says a $2 million ARR company needed growth above 50% to be in the top quartile, while the threshold for a $20 million ARR company was 31%. That contrast reinforces why a top-quartile figure is not a universal success benchmark: the threshold changes with scale. These are percentile comparisons from that report, not predictions about an individual company’s likely outcome. SaaS Capital, Research Brief 33: Growth (2025).

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Account for funding type without mixing cohorts

The 2026 summary reports different overall medians by funding type for the 2025 survey: 20% for bootstrapped firms and 25% for equity-backed firms. Treat these as separate cohort comparisons, not a causal estimate of what funding does to growth. The figures are overall funding-type medians, not ARR-specific rates, so they should not be substituted for the stage table above.

Use retention as a companion metric, not a causal explanation

Growth can be considered alongside net revenue retention (NRR), which captures how recurring revenue from existing customers changes over time after expansion, contraction, and churn. In SaaS Capital’s 2025 survey, companies in the 100%–110% NRR range had growth five percentage points higher than companies in the 90%–100% range. The report describes an association; it does not establish that higher NRR caused the growth difference. SaaS Capital, Research Brief 33: Growth (2025).

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A practical comparison workflow

  1. Calculate your rate: choose ARR or revenue, set the measurement dates, and calculate year-over-year growth consistently.
  2. Select the cohort: match your ARR to the nearest published band, then note whether the benchmark is for private B2B SaaS and whether funding type is relevant.
  3. Compare with the median: state the survey year and describe the result as above, near, or below the cohort median—not as passing or failing.
  4. Add percentile context if available: distinguish the median from the top-quartile threshold and avoid treating a high-performance level as a universal goal.
  5. Review a companion signal: consider NRR alongside growth, while keeping correlation separate from causation.

Public-company figures are not automatically interchangeable with private-company benchmarks. SaaS Capital notes that comparisons with public businesses can be apples-to-oranges for smaller private firms. The cited figures also do not establish a complete comparison controlled for geography, vertical, or business model, so do not imply those factors have been matched.

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