Previous MRR, Current MRR and Target MRR
Compare normalized MRR using the same definition at both dates. Do not mix bookings, cash collections or one-time revenue with recurring revenue.
Calculate SaaS MRR growth between two comparable reporting points, then see the absolute recurring-revenue change, annualized run-rate impact and progress against a planning target.
Compare normalized MRR using the same definition at both dates. Do not mix bookings, cash collections or one-time revenue with recurring revenue.
MRR growth rate is the percentage change in normalized monthly recurring revenue between the two comparison points you enter. The interval must be stated: 12% month-over-month growth and 12% year-over-year growth have very different meanings.
Use the absolute MRR change to see the dollar movement, and use ARR run-rate change only as an annualized recurring-revenue impact. It is not recognized revenue already earned. The target gap and attainment fields are planning outputs and do not affect the growth-rate formula.
Start with two MRR values calculated under the same subscription and normalization policy. The formula is MRR Growth Rate = (Current MRR - Previous MRR) / Previous MRR × 100. Previous MRR must be greater than zero because a percentage growth rate needs a nonzero starting base.
MRR is a management metric for recurring subscription revenue, not total accounting revenue. Keep setup fees, hardware, one-time services, cash collections and unrelated bookings outside both comparison points unless your documented MRR policy says otherwise.
To understand why MRR changed, pair the percentage with Net New MRR and its underlying new, expansion, churn and contraction movements. Use the dedicated MRR Calculator for the base MRR definition itself.
When comparing dashboards or benchmarks, match the interval and population. A monthly growth rate should not be compared directly with an annual company-growth benchmark, and a segment-level result should not be treated as company-wide growth.
Read the matching guide for definitions, formula context, worked examples, reporting boundaries and common mistakes.
Disclaimer: This calculator provides estimates for planning and educational purposes only. Results depend on the assumptions and definitions entered and should not be treated as accounting, financial, legal, tax, valuation or investment advice. Validate material decisions with qualified professionals and your source systems.