What is MRR Growth Rate?
MRR Growth Rate shows how fast your Monthly Recurring Revenue (MRR) is increasing or decreasing over time. It’s a core metric for measuring business momentum in a subscription-based model.
A positive growth rate means your business is expanding. A negative rate signals churn, downgrades, or slower acquisition, and needs your attention.
How is MRR Growth Rate calculated?
GrowthOptix compares your current MRR to the previous period (month over month) and expresses the change as a percentage.
Formula:
MRR Growth Rate = [(Current MRR - Previous MRR) / Previous MRR] × 100
For example, if your MRR last month was $10,000 and this month it's $12,000:
MRR Growth Rate = [(12,000 - 10,000) / 10,000] × 100 = 20%
Why MRR Growth Rate Matters
This metric helps you:
Track how fast you're scaling.
Understand the impact of new subscriptions, upgrades, and churn.
Spot growth plateaus or revenue dips early.
Report performance to stakeholders or investors.
How GrowthOptix calculates and displays it
You’ll find your MRR Growth Rate in the Home Dashboard, Revenue Dashboard, Forecast & Goals
Calculated automatically based on your real-time Stripe and PayPal data
Pro Tip
Combine MRR Growth Rate with Churn Rate and New Subscriptions to fully understand the drivers behind your growth, or your leaks.
Want to monitor growth without spreadsheets?
Connect your payment systems and let GrowthOptix track your MRR Growth Rate automatically. No formulas required.