MRR Growth Rate Calculator
Enter your current and previous MRR to see your growth rate, then project where you'll land if that pace holds.
| Month | Projected MRR |
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What MRR growth rate actually tells you
Month-over-month (MoM) growth rate is the percentage change in your recurring revenue from one month to the next. The annualized figure above compounds that rate over 12 months — it's not a forecast, it's "what this month's pace would produce if it held exactly steady for a year," which it rarely does.
Net new MRR is the raw dollar amount — new plus expansion revenue, minus churn and contraction, all netted together. A business can have a healthy-looking growth rate on a small base ($1k to $1.1k is 10%) that means far less in absolute terms than a lower rate on a large base ($200k to $210k is 5%, but $10k of new revenue).
How to use it
- Early stage (pre-$10k MRR): 10-20% MoM is a commonly cited healthy range, but the percentage is noisy at small numbers — watch the dollar trend too.
- Growth stage ($10k-$100k MRR): 10-15% MoM is strong; 5-7% is typical and fine.
- Later stage ($100k+ MRR): MoM naturally slows; investors and operators increasingly look at YoY (year-over-year) growth instead.
Common mistakes
- Treating the compounded annualized rate as a real forecast rather than a "current pace, held constant" reference point — one unusually good or bad month will distort it heavily.
- Comparing MoM growth rate across companies at very different MRR sizes without also looking at the dollar amounts.
- Not separating growth from churn — a growth rate can look fine while gross new sales are actually covering up serious churn underneath (see the churn & retention calculator for that split, or the Quick Ratio calculator for a single ratio of gains to losses).
Frequently asked questions
What's a good monthly MRR growth rate?
Early stage (pre-$10k MRR): 10-20% MoM is a commonly cited healthy range, though percentages are noisy at small numbers. Growth stage ($10k-$100k MRR): 10-15% MoM is strong, 5-7% is typical and fine. Later stage ($100k+ MRR): MoM growth naturally slows, so investors and operators increasingly look at YoY growth instead.
Is the annualized growth rate a real forecast?
No. It compounds this month's rate over 12 months as if it held perfectly steady, which it rarely does — it's a "current pace, held constant" reference point, not a prediction. One unusually good or bad month distorts it heavily.
Why isn't net new MRR the same thing as growth rate?
Growth rate is a percentage; net new MRR is the raw dollar amount. A business can post a healthy-looking growth rate on a small base ($1k to $1.1k is 10%) that means far less than a lower rate on a large base ($200k to $210k is 5%, but $10k of new revenue) — check both.