MRR Growth Rate Calculator

How to calculate MRR growth rate calculator?

MRR growth rate shows the percentage change in Monthly Recurring Revenue between two periods. It indicates whether subscription revenue is increasing or decreasing month over month.

Formula: MRR growth rate (%) = (Current MRR - Previous MRR) / Previous MRR × 100

Using the MRR growth rate calculator calculator: an example

Example values: Previous MRR = $20,000 and Current MRR = $23,000.

Step-by-step calculation:

• Calculate the change: $23,000 − $20,000 = $3,000.
• Divide by previous MRR: $3,000 ÷ $20,000 = 0.15.
• Convert to percentage: 0.15 × 100 = 15% MRR growth.

Frequently Asked Questions

What counts as MRR?

MRR includes recurring subscription fees billed monthly. Exclude one-time charges, setup fees and non-recurring revenue.

How often should I track MRR growth?

Track MRR monthly to monitor short-term trends and compare consecutive months for accurate growth measurement.

Can MRR growth be negative?

Yes. Negative growth indicates net revenue loss from churn, downgrades or lost customers and should prompt investigation.