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ARR Growth Rate Calculator

Calculate ARR growth over a period and convert it to CMGR and annualized growth (CAGR).

ARR growth is a clean way to track recurring momentum over time. For comparisons across different horizons, convert to CMGR (monthly compounded growth) and annualized growth.

Prefer an explanation- Read the guide.

Related definitions:arr cmgr

ARR growth rate: how to measure recurring momentum Bookings vs ARR: what ARR means (and what it doesn't)MRR: what it means (and how to track it cleanly)MRR forecasting: a simple bridge model (new, expansion, churn)

Start ARR

End ARR

Months between points

Target period growth (optional)

Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:

50%

Start ARR: $1,200,000
End ARR: $1,800,000
Months between points: 12
Target period growth (optional): 0%

How to calculate

Enter start ARR and end ARR for the period.
Enter the number of months between the two points.
Review period growth, CMGR, and annualized growth.

Formula

Period growth = (end ARR - start ARR) / start ARR; CMGR = (end/start)^(1/months) - 1; CAGR = (end/start)^(12/months) - 1

Start and end ARR use the same definition (clean recurring run-rate).
CMGR assumes smooth compounding; use it for comparison and planning, not as a guarantee.

FAQ

Is ARR growth the same as revenue growth-

Not necessarily. ARR is a recurring run-rate snapshot. Revenue is what you recognize over time and can include non-recurring items.

Should I use CMGR or YoY growth-

Use YoY growth for seasonal businesses and for external comparisons. Use CMGR for planning and comparing scenarios over different horizons.

Common mistakes

Using end-of-period ARR and start-of-period ARR from different definitions (inconsistent run-rate).
Including one-time items or services in ARR.
Using very short windows where seasonality dominates.