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DAU Growth Rate

Date created: Apr 7, 2021  •   Last updated: Feb 17, 2022

What is DAU Growth Rate?

DAU Growth Rate is the increase in Daily Active Users over a period of time, typically represented in a percentage. It can be a good indicator of successful sales and marketing efforts, as well as an indicator of good product-market fit.

Alternate names: Daily Active Users Growth Rate

DAU Growth Rate Formula

ƒ (Count(DAU end of period) – Count(DAU beginning of period))/Count(DAU beginning of period)
ƒ (Count(DAU end of period)/Count(DAU beginning of period) - 1)

How to calculate DAU Growth Rate

Your business has 5,000 Daily Active Users at the beginning of the month. By the time you reach the month end, this number has increased to 5,600. This indicates that your DAU Growth Rate is (5,600 – 5,000) / 5,000 which is 12% DAU Monthly Growth Rate.

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How to visualize DAU Growth Rate?

Growth Rates are best visualized with line charts. This lets you identify where your DAU growth rate has increased or decreased, allowing you to act on discrepancies.

DAU Growth Rate visualization example

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DAU Growth Rate

Line Chart

Here's an example of how to visualize your DAU Growth Rate data in a line chart over time.
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DAU Growth Rate

Line Chart

Here's an example of how to visualize your DAU Growth Rate data in a line chart over time.

More about DAU Growth Rate

DAU Growth Rate measures changes in Daily Active Users (DAU) over time by comparing the DAU of a given time period with that of a previous time period. It is usually expressed as a percentage and can be a good indicator that your sales and marketing strategies are attracting high-value customers that are a good fit with your product.

Take care not to equate this metric with monetary success, because it could be growth of user base without growth in revenue, especially if your product follows a freemium pricing model. When this number stagnates, it might be an indication to revise your strategy and even reassess your target audience. Generally, track DAU Growth Rate along with other growth metrics such as MRR Growth Rate and ACV Growth Rate to conduct a fuller analysis of your growth strategy success.

Recommended resources related to DAU Growth Rate

Here’s an article addressing some of the nuances of DAU Growth.