MRR Growth Calculator

The MRR Growth Calculator measures how recurring subscription revenue changed between two points in time. It reports total percentage growth, the dollar increase or decrease, an average monthly change, and a compound monthly growth rate so teams can separate a large one-time jump from sustained momentum. Use it for board reporting, planning, or a quick operating review when you have comparable beginning and ending monthly recurring revenue figures. The result is most meaningful when both values follow the same MRR definition and exclude nonrecurring fees.

Inputs

$
$
months
Result
Total MRR growth over the selected period
Absolute MRR growth
Average monthly increase
Compound monthly growth rate

1. Enter starting MRR
Use the recurring revenue total at the beginning of the measurement window.

2. Enter ending MRR
Use the comparable recurring revenue total at the end of the window.

3. Set the number of months
Count the elapsed months between the two measurements.

4. Review the growth metrics
Compare total growth with the compound monthly rate to understand both scale and pace.

MRR growth (%) = (Ending MRR − Starting MRR) ÷ Starting MRR × 100Compound monthly growth rate = (Ending MRR ÷ Starting MRR)^(1 ÷ Months) − 1

Where:

  • Starting MRR — monthly recurring revenue at the beginning, in dollars
  • Ending MRR — monthly recurring revenue at the end, in dollars
  • Months — length of the measurement period

Assumptions: Both MRR values are calculated consistently and represent recurring subscription revenue only.

What the result means

A positive result means recurring revenue expanded; a negative result means it contracted during the period.

Growth alone does not show whether changes came from new sales, expansion, contraction, or churn.

Given: Starting MRR = $50,000; ending MRR = $62,000; period = 6 months.

Calculation: ($62,000 − $50,000) ÷ $50,000 × 100 = 24%. Compound monthly growth = ($62,000 ÷ $50,000)^(1/6) − 1 = 3.65%.

Result: MRR grew by $12,000, or 24%, with a compound monthly growth rate of about 3.65%.

Should setup fees be included in MRR?

No. MRR normally excludes one-time implementation, hardware, and professional-service charges.

Why is compound monthly growth different from average dollar growth?

Compound growth expresses a consistent percentage pace, while average dollar growth divides the net dollar change evenly across months.

Can ending MRR be lower than starting MRR?

Yes. The calculator will show a negative growth rate, indicating net contraction.

What period should I use?

Use a period long enough to reduce monthly noise, and make sure the starting and ending dates are comparable.

Is MRR growth the same as revenue growth?

Not necessarily. Recognized accounting revenue can include timing effects and nonrecurring items that MRR excludes.