TS

Updated April 2026

SaaS Spend Benchmarks 2026: How Your Company Compares

Consolidated benchmark data from Zylo, Gartner, Productiv, and Flexera in one vendor-neutral reference. No product to sell, just the numbers.

$4,830

Avg spend per employee/yr

275

Avg apps per company

30%

Avg waste rate

15.2%

YoY SaaS spend growth

SaaS Spend per Employee by Industry

IndustryAnnual per EmployeeAvg App Count
Technology$6,200 - $8,500350+
Financial Services$5,800 - $7,200300+
Healthcare$4,900 - $6,100280
Professional Services$4,500 - $5,800260
Retail$3,800 - $5,000220
Manufacturing$3,200 - $4,500180
Education$2,800 - $3,800150

Sources: Zylo SaaS Management Index 2025, Productiv State of SaaS 2025, Gartner estimates

SaaS Spend by Company Size

Company SizePer Employee/YearTotal Annual SaaSGrowth Rate
SMB (under 500)$3,500 - $5,000$350K - $2.5M18%
Mid-market (500-10K)$4,500 - $6,500$2.5M - $65M15%
Enterprise (10K+)$5,500 - $8,500$55M - $500M+12%

IT Spend as Percentage of Revenue

The average across all industries is 3.28% of revenue. This figure includes all IT spending (infrastructure, software, personnel, services), not just SaaS subscriptions. SaaS typically represents 40-60% of total IT spend.

IndustryIT as % of Revenue
Financial Services7.0% - 8.0%
Technology5.0% - 8.0%
Healthcare4.0% - 6.0%
Professional Services3.5% - 5.0%
Retail2.0% - 3.5%
Manufacturing1.5% - 3.0%

Sources: Deloitte CIO Survey 2025, Gartner IT Key Metrics Data

Shadow IT: The Untracked 30%

One-third of SaaS applications in the average organization are unmanaged. These are subscriptions purchased by individual teams or employees without going through centralized IT procurement. Shadow IT creates three problems:

$2.4M+

Untracked Annual Spend

For a 1,000-person company, shadow IT typically represents $2.4M or more in unmanaged subscriptions.

40%

Duplicate Subscriptions

Nearly half of shadow IT apps overlap with existing approved tools, creating pure waste.

3x

Security Risk Multiplier

Unvetted tools are 3x more likely to suffer a data breach than IT-approved applications.

Where the 30% Waste Comes From

Unused Licenses

Employees who have seats but have not logged in for 30+ days. Common with tools purchased during hiring surges or onboarding of acquired teams. Typical unused rate: 15-25% of total licenses.

40% of waste

Duplicate Tools

Multiple teams paying for competing products that serve the same function. The classic example is three different project management tools (Jira, Asana, Monday) used by different departments in the same company.

35% of waste

Auto-Renewed Contracts

Annual subscriptions that renew automatically for tools that are no longer actively used. The renewal passes through finance without anyone questioning whether the tool is still needed. Common after team restructuring or project completion.

25% of waste

Frequently Asked Questions

What is the average SaaS spend per employee in 2026?+
The average SaaS spend per employee is approximately $4,830 per year across all industries. Technology companies spend significantly more at $6,200 to $8,500 per employee, while manufacturing companies spend less at $3,200 to $4,500. This figure has been growing at approximately 15% year-over-year since 2022.
How much of SaaS spending is wasted?+
Approximately 30% of SaaS spend is wasted across organizations. This waste comes from unused licenses where employees have seats but rarely log in, duplicate tools where multiple teams pay for competing products, and auto-renewed contracts for tools that are no longer actively used. A structured audit can typically reclaim 25% to 40% of this waste.
What percentage of SaaS apps are shadow IT?+
Approximately one-third of SaaS applications in an organization are unmanaged shadow IT. These are tools that individual teams or employees subscribe to without going through centralized procurement. Shadow IT creates untracked spend, security vulnerabilities, and compliance risks. Organizations with over 1,000 employees typically have 100+ shadow IT applications.

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