Average SaaS contract length

How long are companies committing to their software contracts in 2026?

Across the 14 categories we track, average SaaS contract lengths in Q3 2026 range from about 15 months to just over two years. HR has the longest average commitment at 25.5 months, followed closely by CRM at 25.1 months and ERP at 23.9 months. Artificial Intelligence has the shortest at 15.5 months.

• Core business systems carry the longest commitments: HR, CRM and ERP all average around two years. These platforms are deeply embedded in day-to-day operations and are costly and disruptive to replace, so companies are more willing to commit for longer, often in exchange for better pricing.
• Development shows the widest gap between average and median: Development’s average contract length is 20.5 months, but its median is just 12 months. The typical Development contract is annual, and a smaller number of long, multi-year deals pull the average up.
• Averages sit above medians in several categories: ERP (average 23.9 months, median 20) and Marketing (average 21.7 months, median 19) follow the same pattern. In each case, a minority of longer deals lifts the average above what most companies actually sign.
• Mid-length categories cluster around 18 to 20 months: Project Management averages 19.2 months, and Collaboration & Productivity has a median of 20 months, roughly in line with a standard 18 to 24 month commitment.
• AI has the shortest commitments: At 15.5 months, Artificial Intelligence has the shortest average contract length, reflecting the sector’s fast pace of change and teams’ preference for shorter cycles so they can switch as better technology emerges.

Comparing your own contract lengths against these benchmarks helps you see whether you’re in line with what similar companies are agreeing to, or whether you’re locking in for longer (or shorter) than you need to.

Shorter commitments give companies more flexibility, but they also mean more frequent renewals and more chances for vendors to raise prices or change terms. That makes it just as important to negotiate favorable terms upfront, whatever the contract length. Useful terms include price uplift caps that limit how much a vendor can raise costs at renewal, protection against feature or usage reductions at the same price tier, and clear exit or renegotiation rights if the vendor’s service or pricing no longer meets expectations.

These are the kinds of terms that are easy to miss without the vendor knowledge and negotiating experience a platform offering outsourced negotiation, like Vertice, brings to every deal.

Data source: These insights are derived from over $75bn of global processed spend managed by Vertice in 2026. Q3 2026 figures are preliminary and based on data processed to date.

Last updated: October 2026