# MRR/ARR Growth Rate Calculator Calculate MRR growth rate, compound monthly growth rate (CMGR), and ARR run rate from starting and ending recurring revenue. --- - **Canonical URL:** https://dothecalculation.com/calculators/mrr-arr-growth-rate-calculator - **Category:** Creative & Digital Marketing - **Publisher:** Do The Calculation (https://dothecalculation.com) - **Cost:** Free, no account or sign-up required - **Privacy:** Runs entirely in the browser; inputs are never sent to a server - **Methodology:** https://dothecalculation.com/methodology --- ## Calculate MRR growth rate, CMGR, and ARR run rate Enter starting and ending MRR to see your growth rate, compound monthly growth rate, and where 12 more months at that pace would land you. - MRR growth rate and CMGR - ARR run rate calculated automatically - 12-month projection at current pace ## 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](/calculators/customer-lifetime-value-calculator) and [CLV to CAC Ratio Calculator](/calculators/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](/calculators/arpu-arppu-saas-calculator) splits total revenue across active and paying users. ## 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. ## 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. ## Related guides - [How to Use Do The Calculation Calculators: A Practical Step-by-Step Guide](https://dothecalculation.com/blog/site-guides/how-to-use-calculators) — Learn the fastest reliable workflow for using Do The Calculation calculators, reading results, checking formulas, and using save, print, share, and export actions correctly. - [Understanding Calculator Formulas: How DTC Turns Inputs into Results](https://dothecalculation.com/blog/site-guides/understanding-calculator-formulas) — 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. ## Related calculators - [Average Revenue Per Account (ARPA) Calculator](https://dothecalculation.com/calculators/average-revenue-per-account-calculator) — Calculate average revenue per subscriber or account over monthly or annual periods to track recurring revenue growth and pricing health. - [CAGR Calculator](https://dothecalculation.com/calculators/cagr-calculator) — Calculate the compound annual growth rate between a starting and ending value to measure investment performance over time. - [Marketing Burn Rate & CAC Runway Calculator](https://dothecalculation.com/calculators/marketing-runway-calculator) — Simulate marketing runway, monthly burn rate, and total new customers acquirable from your budget to plan sustainable growth spend. - [SaaS Burn Rate & Runway Calculator](https://dothecalculation.com/calculators/saas-burn-rate-calculator) — Determine monthly burn rate, growth-adjusted runway, and revenue targets needed to reach break-even cash flow for your SaaS startup. - [Ad Revenue Calculator](https://dothecalculation.com/calculators/ad-revenue-calculator) — Project display ad revenue from page views, RPM, fill rate, and annual traffic assumptions to forecast website monetization earnings. - [Cart Abandonment Rate Calculator](https://dothecalculation.com/calculators/cart-abandonment-rate-calculator) — Analyze shopping cart abandonment rate, potential recovered revenue, and total abandoned cart value to improve ecommerce checkout flow. --- _Growth-rate benchmark ranges cited here are broad, commonly reported industry figures for context, not a target every company should hit — appropriate growth rates vary substantially by market, business model, and company stage._ --- _Source: [Do The Calculation](https://dothecalculation.com/calculators/mrr-arr-growth-rate-calculator). Quote freely with attribution and a link to this page._