MRR Growth Rate is the percentage change in Monthly Recurring Revenue from one month to the next.
What is MRR Growth Rate?
Growth rate, not absolute size, is the strongest predictor of a SaaS company's trajectory and valuation. Tracking it monthly surfaces inflection points — a new channel working, or growth decaying — long before they show up in ARR.
How to calculate MRR Growth Rate
Worked example
If MRR rose from $100,000 to $112,000, the growth rate is ($112,000 − $100,000) ÷ $100,000 = 12% month-over-month.
What's a good MRR Growth Rate?
Early-stage: 10–20% MoM is healthy. As ARR scales past ~$10M, sustaining 5–7% MoM (roughly 2x/year) is excellent.
Frequently asked questions
Should I track gross or net MRR growth?
Net (after churn and contraction) tells you the real trajectory. Pair it with net new MRR broken into new / expansion / churned to see what's driving the number.
Why is my MRR growth rate slowing as I grow?
It's mathematically harder to grow a large base at the same percentage. The same $10k of net new MRR is 10% growth at $100k MRR but only 1% at $1M MRR.
Related metrics
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