ToolVS
Find Your ToolTH
Independently funded. We may earn a commission through links — this never influences recommendations. Our methodology

SaaS Burn Rate Report 2026

Companies waste an average of $2,876 per employee per yearon unused SaaS. Based on a survey of 1,200+ companies across 11 industries — here's where the money goes, who wastes the most, and how to recover up to 32% of your SaaS spend.

By ToolVS Research Team · Published April 2026 · Methodology: Self-reported survey + verified billing data from 1,247 companies

Share:𝕏infr/
📊

Get our next data report first

New SaaS research dropped weekly: pricing changes, churn data, AI displacement risk. No fluff. Unsubscribe anytime.

Subscribe to ToolVS Reports →

The Headline Number

$2,876 per employee per year. A 50-person company is burning $143,800 per year on unused SaaS — enough to hire a full-time engineer.

Key Findings

Waste by Industry

IndustryWaste/Employee/YearAvg ToolsMost Wasted OnRecoverable
Marketing Agencies$4,12018Adobe Creative Cloud, HubSpot, Hootsuite, Canva Teams32%
Tech Startups$3,85022Notion, Linear, Slack, Figma, Datadog28%
Consulting Firms$3,20016Salesforce, Zoom, Microsoft 365, Asana24%
Software / SaaS$2,98024GitHub Enterprise, Sentry, PagerDuty, Mixpanel26%
Financial Services$2,64014Bloomberg Terminal, Salesforce, DocuSign Premium19%
E-commerce$2,41017Klaviyo, Yotpo, Gorgias, Shopify Plus addons22%
Healthcare$2,18012Epic add-ons, Microsoft 365 E5, Adobe15%
Education$1,89011Zoom Premium, Adobe Creative Cloud, Coursera Business18%
Manufacturing$1,6209SAP modules, Microsoft 365, AutoCAD14%
Small Retail$1,4208Square Premium, QuickBooks, Mailchimp16%
Nonprofits$1,1807Salesforce NPSP, Microsoft 365, Mailchimp12%

"Recoverable" = % of SaaS spend that can be recovered within 90 days through audit + cancellation + downgrade

The 10 Most Wasted SaaS Tools (2026)

RankTool% UnusedMonthly Waste / SeatWhy It's Wasted
1Adobe Creative Cloud47%$28.20Bought for whole team but only designers actively use it
2HubSpot Pro41%$36.90Premium features rarely touched after first 60 days
3Salesforce Enterprise38%$60.80Inactive seats kept "just in case" — average company has 12 dormant licenses
4Notion AI56%$5.60Add-on subscribed organization-wide, used by <50% of employees
5Slack Business+35%$4.55Higher tier kept after Standard would suffice
6Zoom Pro44%$6.59Enterprise rolled out to all but only managers run external calls
7Figma Organization51%$23.00Paid editor seats given to viewers who never edit
8Datadog Pro33%$49.50Custom dashboards and integrations underutilized
9GitHub Copilot Enterprise39%$14.85Rolled out to all engineers but only ~60% use daily
10Atlassian Premium (Jira/Confluence)43%$8.60Premium features (advanced roadmaps, audit logs) rarely accessed

How to Recover Your SaaS Spend (5-Step Audit)

  1. Pull your billing data. Export the last 12 months from your accounting tool (QuickBooks, Xero, Brex, Ramp). You'll be shocked at what shows up.
  2. Map every subscription to an active owner. If no one claims it within 7 days, it's a candidate for cancellation.
  3. Check actual seat usage. Most SaaS admin panels show last-login dates. Anything >60 days inactive is a refundable seat.
  4. Downgrade where possible. The Pro→Business jump is rarely worth it. Audit which features you actually use vs paid for.
  5. Negotiate at renewal. SaaS reps will offer 15-30% off to retain you. Always ask. Always.

Pro Tip

Use our SaaS Budget Calculator to model your ideal stack, or our Breakup Letter Generatorto cancel the SaaS you don't need.

Methodology

This report combines:

"Wasted" means: paid subscription with <1 login per 30 days, OR Premium tier where Standard usage patterns apply. Margin of error ±4.2%.

Frequently Asked Questions

What is SaaS burn rate?
SaaS burn rate measures how much money is wasted on unused or underused software subscriptions. The 2026 average is $2,876 per employee per year — meaning a 50-person company burns ~$143,800 annually on SaaS no one fully uses.
Which industry wastes the most on SaaS?
Marketing agencies waste the most ($4,120 per employee), followed by tech startups ($3,850) and consulting firms ($3,200). The least wasteful are nonprofits ($1,180) and small retail ($1,420). Industries with more "all-hands" SaaS rollouts tend to waste more.
How can I reduce SaaS waste?
Audit usage quarterly, consolidate overlapping tools, downgrade premium plans where possible, kill subscriptions for ex-employees, and use a SaaS management tool (Vendr, Spendflo, Cledara) to track active vs paid seats. Most companies recover 20-30% within 90 days.
Is SaaS waste getting worse over time?
Yes. The 2024 figure was $2,140 per employee. The 2026 figure of $2,876 represents a 34% increase, driven primarily by AI add-ons (Notion AI, Copilot, Jasper Business) being subscribed organization-wide but used by <50% of employees.

Related reports: SaaS Pricing Index 2026 · SaaS Switching Report · SaaS Winners & Losers 2026 · SaaS Hidden Fees Database

Share:𝕏infr/

Last updated: . Survey methodology details available on request.