MRR Growth Rate Calculator Formula
Understand the math behind the mrr growth rate calculator. Each variable explained with a worked example.
Formulas Used
MRR Growth Rate
growth_rate = mrr_previous > 0 ? ((mrr_current - mrr_previous) / mrr_previous) * 100 : 0Net New MRR
net_new_mrr = mrr_current - mrr_previousAnnualized Growth Rate
annualized_growth = mrr_previous > 0 ? (pow(mrr_current / mrr_previous, 12) - 1) * 100 : 0Variables
| Variable | Description | Default |
|---|---|---|
mrr_current | Current Month MRR(USD) | 110000 |
mrr_previous | Previous Month MRR(USD) | 100000 |
How It Works
How to Calculate MRR Growth Rate
Formula
MRR Growth Rate = (Current MRR - Previous MRR) / Previous MRR x 100 Annualized Growth = ((Current / Previous)^12 - 1) x 100
Month-over-month MRR growth is the pulse of a subscription business. Consistent positive growth signals strong product-market fit and effective go-to-market execution. The annualized figure shows what the current growth pace would yield over a full year, accounting for compounding.
Worked Example
MRR grew from $100,000 last month to $110,000 this month.
mrr_current = 110000mrr_previous = 100000
- 01Growth Rate = ($110,000 - $100,000) / $100,000 x 100 = 10%
- 02Net New MRR = $110,000 - $100,000 = $10,000
- 03Annualized Growth = (1.10^12 - 1) x 100 = 213.8%
Ready to run the numbers?
Open MRR Growth Rate Calculator