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MRR Growth Calculator

Projects monthly recurring revenue after n months of compound growth from a starting MRR and a monthly growth rate (given directly or derived from new, expansion and churned MRR), and reports the resulting ARR, total growth, the equivalent annual growth rate and the doubling time.

When to use

You run a subscription business and want to see where MRR lands after a number of months at the current growth rate, or convert a monthly rate into an annual one.

Do not use when: Growth is in absolute amounts rather than a percentage each month (use a linear projection), or you need customer-count churn (use churn-rate) or unit economics (use cac-ltv).

Formula

g = monthly_growth_percent/100 or (new_mrr + expansion_mrr − churned_mrr) / starting_mrr; MRR_n = starting_mrr × (1 + g)^months; ARR = 12 × MRR_n; annualised = (1 + g)^12 − 1; months_to_double = ln 2 / ln(1 + g)

Compound projection at a constant monthly rate; when the rate is derived from MRR components, the same percentage (not the same currency amount) is assumed for every month.

Inputs

ParameterTypeUnitRequiredDescription
starting_mrrnumberyesCurrent monthly recurring revenue. Range: ≥ 0, ≤ 1000000000000
monthly_growth_percentnumber%noNet MRR growth per month in percent. If omitted, it is derived from new_mrr + expansion_mrr − churned_mrr relative to starting_mrr. Range: ≥ -100, ≤ 1000
new_mrrnumbernoMRR added from new customers in a typical month (used when monthly_growth_percent is omitted). Range: ≥ 0, ≤ 1000000000000
expansion_mrrnumbernoMRR added from upgrades of existing customers. Range: ≥ 0, ≤ 1000000000000
churned_mrrnumbernoMRR lost from cancellations and downgrades. Range: ≥ 0, ≤ 1000000000000
monthsintegermonthsdefault 12Projection horizon. Range: ≥ 1, ≤ 600

Outputs

OutputTypeUnitDescription
monthly_growth_rate_percentnumber%Rate used for the projection.
net_new_mrr_first_monthnumberstarting_mrr × growth rate (or new + expansion − churned).
mrr_afternumberstarting_mrr × (1 + g)^months.
arr_afternumbermrr_after × 12.
total_growth_percentnumber%((1 + g)^months − 1) × 100.
annualized_growth_percentnumber%((1 + g)^12 − 1) × 100: the CAGR equivalent of the monthly rate.
months_to_doublenumbermonthsln 2 / ln(1 + g) (only when g > 0).

Example

10,000 MRR at 5 %/month for 12 months: {"starting_mrr":10000,"monthly_growth_percent":5,"months":12} → {"monthly_growth_rate_percent":5,"net_new_mrr_first_month":500,"mrr_after":17958.56,"arr_after":215502.76,"total_growth_percent":79.59,"annualized_growth_percent":79.59,"months_to_double":14.21}

20,000 MRR, +1,500 new, +500 expansion, −800 churned, 6 months: {"starting_mrr":20000,"new_mrr":1500,"expansion_mrr":500,"churned_mrr":800,"months":6} → {"monthly_growth_rate_percent":6,"net_new_mrr_first_month":1200,"mrr_after":28370.38,"arr_after":340444.59,"total_growth_percent":41.85,"annualized_growth_percent":101.22}

GET https://tttkmbb.com/api/v1/calculate/mrr-growth?starting_mrr=10000&monthly_growth_percent=5&months=12

Machine access

Sources

FAQ

Why is 5 % monthly not 60 % yearly?

Growth compounds: 1.05^12 = 1.796, so 5 % per month is 79.6 % per year. The often-quoted 'T2D3' path corresponds to roughly 10 % monthly growth in the early years.

What is net new MRR?

New MRR from new customers plus expansion MRR from upgrades minus churned and contraction MRR. Divided by starting MRR it gives the net monthly growth rate used here.

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