Monthly Recurring Revenue (MRR) Growth Rate Calculator

Calculate MRR metrics including growth rate, net new MRR, and revenue retention. Project future revenue based on growth assumptions.

MRR Growth = ((Current - Previous) / Previous) × 100 | Net New MRR = (New + Expansion) - (Churn + Contraction) | Net Retention = ((Prev + Expansion - Churn) / Prev) × 100
Example: Previous $90K, Current $100K, New $15K, Expansion $3K, Churn $2K, Contraction $1K. Growth: 11.1%. Net New: $15K. Net Retention: 111%. Healthy business with >100% NRR is expanding from existing customers.

What is a good MRR growth rate?

For SaaS companies: 10-15% monthly is excellent, 5-10% is good, below 5% indicates slowing growth. Year-over-year: 100%+ is great, 50-100% is good, below 50% needs attention. Early-stage startups typically see higher growth rates (20%+ monthly) than mature companies.

What's the difference between MRR and ARR?

MRR = Monthly Recurring Revenue (normalized monthly value). ARR = Annual Recurring Revenue (MRR × 12). ARR is commonly used for investor reporting and enterprise contracts. Use MRR for internal metrics and tactical decisions, ARR for strategic planning and fundraising.

What is Net New MRR?

Net New MRR = (New MRR + Expansion MRR) - (Churned MRR + Contraction MRR). This is the true growth metric showing month-over-month revenue change. A company might add $50K new MRR but lose $30K to churn, resulting in only $20K net new MRR.

How do I project future MRR?

Use compound growth: Projected MRR = Current MRR × (1 + Growth Rate)^Months. For example, $100K MRR at 10% monthly growth: Month 3 = $100K × 1.1³ = $133K. For conservative estimates, use 70% of historical growth rate to account for market saturation.

What is the Rule of 40?

The Rule of 40 states that a company's growth rate + profit margin should exceed 40% for healthy SaaS businesses. If you're growing at 30%, you can have 10% profit margin. If growing at 20%, you need 20% profit margin. It balances growth with profitability.