Enter your current and previous MRR to see your growth rate, then project where you'll land if that pace holds.
What MRR growth rate actually tells you
Month-over-month (MoM) growth rate is the percentage change in your
recurring revenue from one month to the next. The annualized figure
above compounds that rate over 12 months — it's not a forecast, it's
"what this month's pace would produce if it held exactly steady for a
year," which it rarely does.
Net new MRR is the raw dollar amount — new plus expansion revenue,
minus churn and contraction, all netted together. A business can have a
healthy-looking growth rate on a small base ($1k to $1.1k is 10%) that
means far less in absolute terms than a lower rate on a large base
($200k to $210k is 5%, but $10k of new revenue).
How to use it
- Early stage (pre-$10k MRR): 10-20% MoM is a commonly cited healthy
range, but the percentage is noisy at small numbers — watch the dollar
trend too.
- Growth stage ($10k-$100k MRR): 10-15% MoM is strong; 5-7% is
typical and fine.
- Later stage ($100k+ MRR): MoM naturally slows; investors and
operators increasingly look at YoY (year-over-year) growth instead.
Common mistakes
- Treating the compounded annualized rate as a real forecast rather
than a "current pace, held constant" reference point — one unusually
good or bad month will distort it heavily.
- Comparing MoM growth rate across companies at very different MRR
sizes without also looking at the dollar amounts.
- Not separating growth from churn — a growth rate can look fine
while gross new sales are actually covering up serious churn
underneath (see the churn &
retention calculator for that split).