MRR Growth Calculator
Measure month-on-month growth in monthly recurring revenue, and what it compounds to over a year.
About MRR Growth Calculator
Period-on-period growth expresses the change in monthly recurring revenue as a percentage of where it started, so a rise from 10 to 12 and from 100 to 120 both read as 20%. Growth rate is the headline number in every board pack and investor update, and it is the basis of the forecasts built on top of it.
Formula
MRR Growth
Growth % = (MRR at end of month − MRR at start of month) ÷ MRR at start of month × 100
- MRR at start of month
- Value at the start of the period
- MRR at end of month
- Value at the end of the period
Worked example
With the default values below, MRR Growth Calculator returns Growth Rate of 8.00%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- MRR at start of monthminimum 0
- 50,000
- MRR at end of monthminimum 0
- 54,000
Results
- Growth Rate
- 8.00%
- Absolute Change
- 4,000.00
- Growth Multiple
- 1.080
- Direction
- Growth of 8%
Step by step
- 1Values used
- 2MRR Growth
- 3Growth Rate= 8.00
- 4Absolute Change= 4,000.00
- 5Growth Multiple= 1.080
- 6Direction= Growth of 8%
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is MRR Growth calculated?
Growth % = (MRR at end of month − MRR at start of month) ÷ MRR at start of month × 100 Period-on-period growth expresses the change in monthly recurring revenue as a percentage of where it started, so a rise from 10 to 12 and from 100 to 120 both read as 20%.
Why does MRR Growth matter?
Growth rate is the headline number in every board pack and investor update, and it is the basis of the forecasts built on top of it.
What values do I need to enter?
This calculator takes 2 inputs: MRR at start of month, MRR at end of month. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.
Related Calculators
You might also need
- Gross Profit CalculatorCommonly used together
- Net Profit CalculatorCommonly used together
- Net Profit Margin CalculatorCommonly used together
- 409A Valuation EstimatorAlso in Business & Entrepreneurship
- Annual Contract Value CalculatorAlso in Business & Entrepreneurship
- Annual Recurring Revenue CalculatorAlso in Business & Entrepreneurship
