MRR Growth Rate Calculator
Divide the increase by last month's figure. From 48,000,000 to 52,000,000 is 4,000,000 of net new MRR and 8.33% growth. ARR is this month's MRR times twelve: 624,000,000. If that 8.33% held for a year, the annualised rate is not 100% but 161.3% — 1.0833 raised to the twelfth power.
Your numbers
Monthly MRR growth
8.33%
ARR
624,000,000
Annualised growth
161.3%
Net new MRR
4,000,000
Formula
Monthly MRR growth = (MRR this month − MRR a month ago) ÷ MRR a month ago × 100, ARR = MRR this month × 12
Multiplying monthly growth by twelve does not give yearly growth; it has to be a power, and at 8% the gap is already 61 points. This is a net figure, so new business and upgrades hiding churn and downgrades makes a good 8% look calm while revenue leaks underneath. A single month also swings on one large contract, so read three together — and the ×12 for ARR misleads where annual and monthly contracts are mixed.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| MRR this monthThis month's recurring revenue; one-off sales stay out. | 52,000,000 | 0 and up |
| MRR a month agoRecurring revenue a month ago — the denominator of the growth rate. | 48,000,000 | 0 and up |
Step by step
Quick reference table
Results when only MRR this month changes and everything else stays put.
| MRR this month | Monthly MRR growth (%) | ARR | Annualised growth (%) |
|---|---|---|---|
| 26,000,000 | -45.83 | 312,000,000 | -99.9 |
| 39,000,000 | -18.75 | 468,000,000 | -91.7 |
| 52,000,000 | 8.33 | 624,000,000 | 161.3 |
| 78,000,000 | 62.5 | 936,000,000 | 33,803.2 |
| 104,000,000 | 116.67 | 1,248,000,000 | 1,070,199.3 |
What each result means
| Result | At default values |
|---|---|
| Monthly MRR growth (%)How far MRR rose in a month, measured net of churn and downgrades. | 8.33 |
| ARRThis month's MRR times twelve; mixed contract terms distort it. | 624,000,000 |
| Annualised growth (%)What that monthly rate compounds to over a year — not twelve times it. | 161.3 |
| Net new MRRThe MRR actually added this month, net of everything lost. | 4,000,000 |
Common mistakes
Multiplying monthly growth by twelve does not give yearly growth; it has to be a power, and at 8% the gap is already 61 points. This is a net figure, so new business and upgrades hiding churn and downgrades makes a good 8% look calm while revenue leaks underneath. A single month also swings on one large contract, so read three together — and the ×12 for ARR misleads where annual and monthly contracts are mixed.
Glossary
- MRR this month
- This month's recurring revenue; one-off sales stay out.
- MRR a month ago
- Recurring revenue a month ago — the denominator of the growth rate.
- Monthly MRR growth
- How far MRR rose in a month, measured net of churn and downgrades.
- ARR
- This month's MRR times twelve; mixed contract terms distort it.
- Annualised growth
- What that monthly rate compounds to over a year — not twelve times it.
- Net new MRR
- The MRR actually added this month, net of everything lost.
Frequently asked questions
Q. How is MRR Growth Rate Calculator calculated?
Monthly MRR growth = (MRR this month − MRR a month ago) ÷ MRR a month ago × 100, ARR = MRR this month × 12 — Divide the increase by last month's figure. From 48,000,000 to 52,000,000 is 4,000,000 of net new MRR and 8.33% growth. ARR is this month's MRR times twelve: 624,000,000. If that 8.33% held for a year, the annualised rate is not 100% but 161.3% — 1.0833 raised to the twelfth power.
Q. Can you walk through an example?
With MRR this month 52,000,000, MRR a month ago 48,000,000, the answer is Monthly MRR growth 8.33%.
Q. What do I need to enter?
Enter MRR this month, MRR a month ago. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only MRR this month moves the answer to MRR this month 26,000,000 → Monthly MRR growth (%) -45.83 and MRR this month 104,000,000 → Monthly MRR growth (%) 116.67. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
Multiplying monthly growth by twelve does not give yearly growth; it has to be a power, and at 8% the gap is already 61 points. This is a net figure, so new business and upgrades hiding churn and downgrades makes a good 8% look calm while revenue leaks underneath. A single month also swings on one large contract, so read three together — and the ×12 for ARR misleads where annual and monthly contracts are mixed.
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