marketing calculator

MRR/ARR Growth Rate Calculator

Calculate MRR growth rate, compound monthly growth rate (CMGR), and ARR run rate from starting and ending recurring revenue.

MRR Growth Rate = (Ending MRR − Starting MRR) ÷ Starting MRR × 100. CMGR converts that into a compounding monthly rate: CMGR = ((Ending MRR ÷ Starting MRR)^(1/months) − 1) × 100. ARR = current MRR × 12, an annualized run rate.

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Inputs

Starting MRR$

Ending MRR$

Months between them

Results

MRR Growth Rate

30.00%

CMGR (Compound Monthly)4.47%

Net New MRR$15,000

Current ARR (Ending MRR × 12)$780,000

12-Month Projected MRR$109,850

12-Month Projected ARR$1,318,200

Tip

Save this page for monthly board reporting, investor updates, or checking your growth rate against stage-based SaaS benchmarks.

Formula

MRR growth rate, CMGR, and ARR formulas

Growth Rate = (Ending MRR − Starting MRR) ÷ Starting MRR × 100. CMGR = ((Ending MRR ÷ Starting MRR)^(1/months) − 1) × 100. ARR = Ending MRR × 12.

CMGR converts total growth over any period into an equivalent steady monthly rate, accounting for compounding rather than simple division.

Step by step

How the calculation works

1Enter starting MRR, ending MRR, and how many months apart they were measured.
2Review the total growth rate for that period alongside CMGR, the equivalent steady monthly rate.
3Check current ARR (annualized run rate) and where 12 more months at the same CMGR would land.
4Compare your CMGR against stage-based SaaS benchmarks in the notes below.

Example

Worked example: $50,000 → $65,000 MRR over 6 months

Total growth is 30% over the period, but CMGR — the compounding monthly rate — works out to about 4.47% per month, not 30% ÷ 6 = 5%. Projected 12 more months at that pace, MRR would reach roughly $109,850 (about $1.32M ARR).

Related guides

Learn more about this calculation

Guide

How to Use Do The Calculation Calculators: A Practical Step-by-Step Guide

Learn the fastest reliable workflow for using Do The Calculation calculators, reading results, checking formulas, and using save, print, share, and export actions correctly.

Guide

Understanding Calculator Formulas: How DTC Turns Inputs into Results

Understand how Do The Calculation formulas are presented, what the explanation blocks mean, and how to verify calculator logic before using a result in a real decision.

MRR/ARR Growth Rate Calculator

Calculate MRR growth rate, compound monthly growth rate (CMGR), and ARR run rate from starting and ending recurring revenue.

How to understand and use this calculator

MRR growth rate vs. CMGR — not the same number

MRR Growth Rate over a period is simple: (Ending MRR − Starting MRR) ÷ Starting MRR × 100. If MRR went from $100,000 to $120,000 over a quarter, that's 20% growth — but only for that whole quarter, not per month. Compound Monthly Growth Rate (CMGR) answers the more useful question — what steady monthly rate, compounded, would produce that same result — using CMGR = ((Ending MRR ÷ Starting MRR)^(1/months) − 1) × 100. For the same $100,000 → $120,000 move over 3 months, CMGR works out to about 6.27% per month, not 20% ÷ 3 = 6.67% — compounding means the monthly rate is always slightly lower than the naive average, because each month's growth builds on a slightly larger base than simple division assumes.

Why ARR is just MRR × 12, and when that's misleading

Annual Recurring Revenue (ARR) is calculated as current MRR × 12 — an annualized run rate, not revenue that has actually been collected over a real year. This is standard practice and useful for a quick 'if nothing changed, what would a year look like' snapshot, but it can overstate reality for a fast-growing company (this month's MRR annualized ignores that most of the year had lower MRR) and understate it for a company mid-way through a seasonal dip. ARR is a rate, not a guarantee — the calculator's 12-month projection below is a separate, explicitly forward-looking estimate for that reason.

Where growth-rate benchmarks actually come from

Commonly cited SaaS growth-rate benchmarks group companies by stage: roughly 15-20% monthly MRR growth for early-stage startups still finding product-market fit, 10-15% for growing mid-stage SaaS companies, and 5-10% for mature SaaS companies with a larger revenue base (where the same percentage represents much more absolute dollar growth). These are broad industry-reported ranges, not a formula — a company well above or below its stage's typical range isn't automatically doing something wrong, but it's a useful gut-check for whether reported growth is unusually fast, unusually slow, or roughly in line with peers at a similar size.

Worked example: reading the CMGR sanity check

A company reporting $50,000 MRR growing to $65,000 MRR over 6 months might describe that as '30% growth this half.' Run through CMGR: ((65,000 ÷ 50,000)^(1/6) − 1) × 100 ≈ 4.47% per month. Projected forward 12 more months at that same monthly pace, $65,000 MRR would compound to roughly $65,000 × (1.0447)^12 ≈ $109,850 MRR, or about $1.32M ARR — a concrete, checkable number that a flat '30% growth' headline doesn't give you on its own.

Net new MRR: the number behind the percentage

Net New MRR (Ending MRR − Starting MRR in absolute dollars) matters alongside the percentage because growth rate alone can mislead at different revenue sizes. A company growing from $10,000 to $12,000 MRR (20% growth, $2,000 net new) and one growing from $1,000,000 to $1,050,000 MRR (5% growth, $50,000 net new) are both healthy, but comparing only their percentages misses that the larger company added 25x more actual revenue despite the lower growth rate — a normal and expected pattern as a company's revenue base grows.

Related calculators

Want to know what that growth rate is actually worth per customer? The Customer Lifetime Value Calculator and CLV to CAC Ratio Calculator put growth in the context of acquisition efficiency. Need the per-user revenue breakdown behind your MRR figure? The ARPU/ARPPU SaaS Calculator splits total revenue across active and paying users.

Related concepts

MRR growth rate

The percentage change in Monthly Recurring Revenue over a given period, from starting to ending MRR.

CMGR (Compound Monthly Growth Rate)

The steady monthly growth rate that, compounded over the measured period, would produce the same starting-to-ending MRR change.

ARR (Annual Recurring Revenue)

Current MRR annualized (× 12) — a forward-looking run rate, not revenue already collected over a full year.

Net New MRR

The absolute dollar change in MRR over a period, which matters alongside the percentage growth rate at different revenue sizes.

Frequently Asked Questions

What is the MRR growth rate formula?+

MRR Growth Rate = (Ending MRR − Starting MRR) ÷ Starting MRR × 100. Going from $100,000 to $120,000 MRR is (120,000−100,000)÷100,000×100 = 20% growth over that period.

What's the difference between MRR growth rate and CMGR?+

MRR growth rate is the total percentage change over the whole period measured. CMGR (Compound Monthly Growth Rate) converts that into an equivalent steady monthly rate, accounting for compounding — it's always slightly lower than simply dividing the total growth rate by the number of months.

How is ARR calculated from MRR?+

ARR = Current MRR × 12. It's an annualized run rate based on the current month, not actual revenue collected over a real 12-month period.

What's a good MRR growth rate for a SaaS company?+

Commonly cited benchmarks are roughly 15-20% monthly for early-stage startups, 10-15% for growing companies, and 5-10% for mature SaaS companies — broad industry ranges, not hard targets, and they vary by company size and market.

Why does CMGR differ from just dividing growth rate by months?+

Because growth compounds — each month's increase builds on a slightly larger base than the month before. Dividing total growth by the number of months (simple average) ignores that compounding effect and gives a rate that's too low to actually reach the ending MRR if applied monthly.

Is a higher growth rate always better than more net new MRR?+

Not necessarily. Percentage growth rate naturally shrinks as a company's MRR base grows, so comparing growth rates across companies of very different sizes without also checking net new MRR in dollars can be misleading.

Does this calculator account for churn separately?+

No — it works from your net starting and ending MRR figures, which already reflect the combined effect of new revenue, expansion, and churn. For a churn-specific breakdown, you'd need new MRR, expansion MRR, and churned MRR tracked separately.

How the calculation works

1Enter starting MRR, ending MRR, and how many months apart they were measured.

2Review the total growth rate for that period alongside CMGR, the equivalent steady monthly rate.

3Check current ARR (annualized run rate) and where 12 more months at the same CMGR would land.

4Compare your CMGR against stage-based SaaS benchmarks in the notes below.

How to understand and use this calculator

MRR growth rate vs. CMGR — not the same number

Why ARR is just MRR × 12, and when that's misleading

Where growth-rate benchmarks actually come from

Worked example: reading the CMGR sanity check

Net new MRR: the number behind the percentage

Related calculators

Related concepts

MRR growth rate

The percentage change in Monthly Recurring Revenue over a given period, from starting to ending MRR.

CMGR (Compound Monthly Growth Rate)

The steady monthly growth rate that, compounded over the measured period, would produce the same starting-to-ending MRR change.

ARR (Annual Recurring Revenue)

Current MRR annualized (× 12) — a forward-looking run rate, not revenue already collected over a full year.

Net New MRR

The absolute dollar change in MRR over a period, which matters alongside the percentage growth rate at different revenue sizes.

Frequently Asked Questions

What is the MRR growth rate formula?+

MRR Growth Rate = (Ending MRR − Starting MRR) ÷ Starting MRR × 100. Going from $100,000 to $120,000 MRR is (120,000−100,000)÷100,000×100 = 20% growth over that period.

What's the difference between MRR growth rate and CMGR?+

How is ARR calculated from MRR?+

ARR = Current MRR × 12. It's an annualized run rate based on the current month, not actual revenue collected over a real 12-month period.

What's a good MRR growth rate for a SaaS company?+

Why does CMGR differ from just dividing growth rate by months?+

Is a higher growth rate always better than more net new MRR?+

Does this calculator account for churn separately?+

MRR/ARR Growth Rate Calculator

Inputs

Results

MRR growth rate, CMGR, and ARR formulas

How the calculation works

Worked example: $50,000 → $65,000 MRR over 6 months

Learn more about this calculation

How to Use Do The Calculation Calculators: A Practical Step-by-Step Guide

Understanding Calculator Formulas: How DTC Turns Inputs into Results

MRR/ARR Growth Rate Calculator

Inputs

Results

Key output metrics

MRR: Starting vs. Ending vs. 12-Month Projection

How to understand and use this calculator

MRR growth rate vs. CMGR — not the same number

Why ARR is just MRR × 12, and when that's misleading

Where growth-rate benchmarks actually come from

Worked example: reading the CMGR sanity check

Net new MRR: the number behind the percentage

Related calculators

Related concepts

Frequently Asked Questions

MRR growth rate, CMGR, and ARR formulas

How the calculation works

Worked example: $50,000 → $65,000 MRR over 6 months

Learn more about this calculation

How to Use Do The Calculation Calculators: A Practical Step-by-Step Guide

Understanding Calculator Formulas: How DTC Turns Inputs into Results

Key output metrics

MRR: Starting vs. Ending vs. 12-Month Projection

How to understand and use this calculator

MRR growth rate vs. CMGR — not the same number

Why ARR is just MRR × 12, and when that's misleading

Where growth-rate benchmarks actually come from

Worked example: reading the CMGR sanity check

Net new MRR: the number behind the percentage

Related calculators

Related concepts

Frequently Asked Questions