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Monthly Recurring Revenue Growth Rate

What is Monthly Recurring Revenue Growth Rate?

Monthly Recurring Revenue (MRR) Growth Rate is a key SaaS growth metric that measures the percentage increase or decrease in MRR from one month to the next.

What is Monthly Recurring Revenue Growth Rate?

You can calculate it by comparing the difference in MRR between two months against the MRR of the previous month, then expressing it as a percentage.

Steps to Calculate Monthly Recurring Revenue Growth Rate

  • Step 1 – Identify the current month’s MRR.
  • Step 2 – Identify the previous month’s MRR.
  • Step 3 – Calculate the change in MRR.
  • Step 4 – Divide by the previous MRR.
  • Step 5 – Convert to Percentage.

Formula to Calculate Monthly Recurring Revenue Growth Rate

MRR Growth Rate (%) = (Current Month MRR – Previous Month MRR ) ÷ Previous Month MRR × 100

Benchmark for Monthly Recurring Revenue Growth Rate

High growth rates are harder to maintain as revenue scales. However, a growth rate of 15-25% MoM is ideal for scaling SaaS.

Related Metrics for Monthly Recurring Revenue Growth Rate

  • New MRR
  • Expansion MRR
  • Contraction MRR
  • Churn MRR
  • Net New MRR

FAQ's

It indicates whether your SaaS revenue engine is accelerating, flatlining, or declining, helping assess business health and investor readiness.

Both matter. Absolute MRR shows scale, while growth rate shows momentum.

Yes, MRR Growth Rate should always reflect net growth, including losses.