SaaS Metric
Net Promoter Score (NPS)
Definition
Net Promoter Score (NPS) measures customer loyalty from one question: how likely are you to recommend us, on a 0–10 scale. NPS = % promoters (9–10) − % detractors (0–6), giving a score from −100 to +100. It is a widely used satisfaction signal and a loose leading indicator of retention, but it is survey-based and self-reported, so it complements rather than replaces hard churn data.
Formula
NPS = % of promoters (scored 9–10) − % of detractors (scored 0–6) (passives scored 7–8 are excluded from the calculation)
Benchmark
NPS varies hugely by industry; for B2B SaaS, scores above ~30 are generally good and above ~50 excellent. Track your own trend more than the absolute number.
How NPS is calculated
Respondents rate their likelihood to recommend on a 0–10 scale. Those who answer 9 or 10 are promoters, 7–8 are passives, and 0–6 are detractors. The score is simply the percentage of promoters minus the percentage of detractors; passives are ignored. The result ranges from −100 (everyone a detractor) to +100 (everyone a promoter).
NPS is popular because it is simple and comparable over time, but it has real limits as a retention metric. It is self-reported, sensitive to when and how you ask, and only loosely correlated with actual behaviour — happy survey respondents still churn. Treat it as one input into a customer health score, not as a substitute for measured churn and retention.
Frequently asked questions
How is Net Promoter Score calculated?
Survey customers on a 0–10 "would you recommend" scale. Subtract the percentage of detractors (0–6) from the percentage of promoters (9–10); passives (7–8) are excluded. The score ranges from −100 to +100.
What is a good NPS for SaaS?
It varies widely by industry, but for B2B SaaS a score above roughly 30 is generally considered good and above 50 excellent. Because benchmarks differ so much, your own trend over time is more informative than the absolute figure.
Is NPS a reliable retention metric?
Only loosely. NPS is self-reported and survey-timing-sensitive, and satisfied respondents still churn. It works best as one signal within a broader customer health score, alongside measured churn, usage, and renewal behaviour.
Related metrics
Customer Health Score
A customer health score is a composite indicator that predicts how likely an account is to renew, expand, or churn. Learn what signals go into it and how predictive scoring works.
Churn Rate
Churn rate is the percentage of customers or revenue lost in a period. Learn the customer churn and revenue churn formulas, healthy SaaS benchmarks, and how to reduce it.
Net Revenue Retention (NRR)
Net revenue retention (NRR) measures recurring revenue kept from existing customers including expansion. Learn the NRR formula, what 100%+ means, and SaaS benchmarks.
Activation Rate
Activation rate is the share of new users or accounts that reach a meaningful first-value milestone. Learn how to define activation, the formula, and why it predicts retention.
Track this automatically
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Benchmarks are general SaaS ranges and vary by segment, stage and business model. Last reviewed 2026-05-30.