★ How fast is recurring revenue compounding each month?
MRR Growth Rate Calculator
Calculate compound monthly MRR growth between two dates and see what it means annually. Free MRR growth calculator with the CMGR formula.
- Runs in your browser
- No signup
Your MRR growth
8.1%
- Annualized: 156% a year at this pace.
- For reference: tripling in a year takes about 9.6% a month; doubling takes about 5.9%.
CMGR = (ending MRR ÷ starting MRR)^(1 ÷ months) − 1
MRR growth: 8.1%.
Growth stalls when the product stops giving people new reasons to pay. I build those reasons.
How it works
Simple average growth overstates progress, because each month grows from a bigger base. Compound monthly growth rate finds the single steady rate that turns the starting MRR into the ending MRR over the period.
Use at least three to six months. Single-month growth rates are noisy, especially when a few large deals land.
Worked example
MRR grew from $20,000 to $32,000 over six months.
| Input | Value |
|---|---|
| Starting MRR | $20,000 |
| Ending MRR | $32,000 |
| Months between | 6 months |
| MRR growth | 8.1% |
Benchmarks
There is no universal monthly target; what is good depends on stage and size. A useful reference is the T2D3 path from Battery Ventures (triple, triple, double, double, double annual revenue), which works out to roughly 9.6% a month in tripling years and 5.9% in doubling years.
Directional: these are rules of thumb, not universal standards. Compare yourself with companies at your stage, selling to the same kind of customer.
How to improve it
- Separate new, expansion and churned MRR to see which one moves the rate.
- Plug churn: at small scale, a few lost customers erase a month of growth.
- Ship features that open a new segment, not only polish for existing users.
- Raise prices on new signups and measure the effect on conversion.
Questions founders actually ask
Why not just average the monthly growth rates?
How do I convert monthly growth to annual growth?
What is T2D3?
Should I use MRR or revenue?
Related metrics
More from the workbench
Fine print
Tools: on the house.
Engineer: by the hour.
Moving them is the expensive part, and the part I'm good at: activation flows, upsell moments and the product work behind better numbers.
I'm Himanshu, an AI and full-stack engineer. I build MVPs, AI agents and the growth plumbing around them for early-stage startups.
