Average SaaS contract length

The average SaaS contract now spans nearly two years, as businesses shift toward longer-term stability over short-term flexibility

With an average contract length of 22.3 months, companies are increasingly locking in their SaaS stacks for longer durations. This represents a significant upward trend from the 19.2-month average seen in 2025, signaling that many organizations are now prioritizing price protection and operational continuity over the ability to "chop and change" their software.

Monitoring these commitment trends is essential for benchmarking your own procurement strategy. It is particularly noticeable that businesses are willing to commit most heavily to foundational infrastructure. Development (30.7 months) and CRM (26.4 months) stand out as the longest average commitments.

On the flip side, Artificial Intelligence (15.3 months) and Project Management (17.4 months) see the shortest commitments. This reflects a strategic hesitance; as these markets – especially AI – evolve rapidly, departments are opting for shorter cycles to experiment with new features and switch providers more easily as better technology emerges.