Definition
MRR growth rate measures how MRR changed between two points in time. It can be expressed as period growth, CMGR, or annualized growth.
Formula
MRR growth (period) = (end MRR - start MRR) / start MRR
Example
Start MRR $200k and end MRR $230k in 3 months: period growth is 15%.
How to use it
- Use CMGR to compare growth across different horizons.
- Use an MRR waterfall to explain drivers (new vs expansion vs churn).
- Pair growth with retention (NRR/GRR) and payback to judge quality.
- Track by segment to separate enterprise deal timing from core momentum.
Common mistakes
- Comparing short periods without adjusting for seasonality or deal timing.
- Mixing run-rate MRR with recognized revenue in growth reports.
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "MRR Growth Rate" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., MRR Growth Rate Calculator) to sanity-check assumptions.
- Read the related guide (e.g., MRR growth rate: how to measure recurring momentum) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- MRR Growth Rate Calculator: Calculate MRR growth over a period and convert it to CMGR and annualized growth (CAGR).
- MRR Waterfall Calculator: Build an MRR waterfall: starting MRR + new + expansion - contraction - churn = ending MRR.
Guides
- MRR growth rate: how to measure recurring momentum: A practical MRR growth guide: compute period growth, CMGR, and annualized growth (CAGR) from start and end MRR.
- MRR: what it means (and how to track it cleanly): A guide to MRR: definitions, what to include/exclude, and how to decompose MRR changes over time.