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MRR Growth Rate Calculator

Track your month-over-month MRR growth

How it is calculated

Enter monthly recurring revenue at the start and at the end of the period, in the same currency. The tool computes growth (%) = (end − start) ÷ start × 100 and net new MRR, end − start. Both are shown, the second in dollars.

Starting MRR must be greater than zero (growth from nothing is undefined), but the ending MRR may be lower, which gives a negative growth rate and a negative net new MRR. The tool compares only two numbers; it does not split net new MRR into new, expansion, contraction and churned revenue. Despite the name, it works for any two consecutive periods, as long as you read the result as growth over that period.

Worked example

A subscription business had $20,000 of MRR last month and $22,400 this month. Net new MRR is 22,400 − 20,000 = $2,400.00. Growth is 2,400 ÷ 20,000 = 0.12, which is 12.00%. If that rate held for 12 months, MRR would compound to roughly 3.9 times the starting figure (1.1212 ≈ 3.9), but real growth rarely stays constant.

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Common mistakes

  • Dividing the change by the ending MRR instead of the starting MRR, which understates growth (here 10.71% rather than 12%).
  • Including one-off or usage-based revenue in MRR. Only recurring subscription revenue belongs in it.
  • Entering annual revenue for one month and monthly for the other.
  • Adding monthly growth rates to get a yearly rate. They compound; use a multiplication instead.
  • Ignoring churn: a flat net figure can hide large new sales offset by cancellations.

About this calculator

This calculator computes MRR growth rate = (this month's MRR − last month's MRR) ÷ last month's MRR × 100 alongside net new MRR (the dollar difference), the core metric SaaS companies use to track how fast recurring revenue is compounding month over month, separate from one-time or usage-based revenue.

Founders and finance teams watch this number to catch a slowdown early — a healthy early-stage SaaS company is often benchmarked against a 10-20% MoM growth target — and investors use it during fundraising to judge momentum, since a steady growth rate compounded over a year tells a very different story than the same total revenue reached in one lumpy quarter.

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Comments (1)

  • Editorial team

    One month of growth is noisy, so run several consecutive months and look at the pattern. Convert annual or quarterly plans to a monthly amount before entering them, or a single large signing will make a month look better than the underlying subscription base really is. The tool needs a starting MRR above zero and shows contraction as a negative rate. How do you count annual contracts in your MRR?

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