MRR Growth Rate

What is MRR Growth Rate?

Monthly Recurring Revenue (MRR) Growth Rate is the velocity at which MRR is being added to the business, expressed as a percentage. MRR Growth Rate is often cited as a monthly rate, but it's also possible to express it using an annual timeframe; for example, "we are targeting 10% MRR Growth for April", or "our MRR Growth Rate was 100% last year".
Alternate names: Monthly Recurring Revenue Growth Rate

Benchmark

For companies at less than $100K in MRR, best in class growth rates are 9% to 14% per month. Those growth rates will be hard to maintain, and for companies above $500K in MRR, best in class falls to 4% to 7%.

How to calculate MRR Growth Rate

ƒ (Total MRR end of period - Total MRR beginning of period) / (Total MRR beginning of period)

Favourable trend

Up is positive

Complexity level:
Beginner

Date created: Apr 28, 2018

Latest update: Aug 12, 2019

Example

A recurring revenue business increased its MRR from $250K at the beginning of the month to $265K at the end of the month.

(Total MRR end of period - Total MRR beginning of period) / (Total MRR beginning of period)

Net MRR Growth = MRR at the end of the period - MRR at the beginning of the period = $15K
$15K / $250K = 6% MRR Growth Rate per month

Metrics related to MRR Growth Rate

Monthly Recurring Revenue
Revenue
Won Opportunities