Let's say your business had an MRR of $10,000 in January and $12,000 in February. Here's how you would calculate the MRR Growth Rate:
- Identify Current Month MRR: February MRR = $12,000
- Identify Previous Month MRR: January MRR = $10,000
- Subtract Previous from Current: $12,000 - $10,000 = $2,000
- Divide by Previous Month MRR: $2,000 / $10,000 = 0.2
- Multiply by 100 to get Percentage: 0.2 * 100 = 20%
In this example, your MRR Growth Rate is 20%.