MRR Growth Rate
The month-over-month percentage increase in your Monthly Recurring Revenue.
What it means
MRR Growth Rate measures how fast your recurring revenue is growing each month. It accounts for new customers, expansion revenue (upgrades), and losses from churn and downgrades. Consistent MRR growth rate is the clearest signal that your business is scaling. Investors often look for 15-20% month-over-month growth in early-stage SaaS.
Formula
MRR Growth Rate = ((MRR this month − MRR last month) ÷ MRR last month) × 100%
Why it matters
MRR growth rate tells you whether you're accelerating or decelerating. A declining growth rate is an early warning signal, even if absolute MRR is still increasing. Compounding growth is what makes SaaS powerful: 15% monthly growth turns $10k MRR into $54k in 12 months.
What is a good MRR growth rate?
15-20% month-over-month is considered strong for early-stage SaaS. As companies mature, 5-10% monthly is still healthy. The T2D3 framework suggests tripling revenue twice, then doubling three times.
How do you increase MRR growth rate?
Acquire more customers, reduce churn, increase pricing, upsell existing customers, and expand into new markets. Content marketing helps with both acquisition and retention.
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