MRR Lab

Revenue Growth Rate Calculator

Calculate and analyze your SaaS revenue growth rate to benchmark against industry standards and track business performance.

Month-over-Month Growth Rate

25.0%

Annualized Growth Rate

1355.2%

Calculate your SaaS company's revenue growth rate and compare it across different time periods. This tool helps you understand both your period-over-period growth and its annualized equivalent.

How It Works

  1. Enter your previous period's MRR (Monthly Recurring Revenue)
  2. Enter your current period's MRR
  3. Select the time period (monthly, quarterly, or annual)
  4. The calculator will show both your period-over-period growth rate and the annualized equivalent

Understanding the Results

The calculator shows two growth rates:

Period-over-Period Growth Rate

This is the direct growth rate between your two data points, calculated using:

Growth Rate = ((Current MRR - Previous MRR) / Previous MRR) × 100

Annualized Growth Rate

This converts your period growth to an annual equivalent:

For monthly growth:

Annualized Rate = (1 + monthly_rate)^12 - 1

Example:
25% monthly growth = (1.25)^12 - 1 = 1355.19%

For quarterly growth:

Annualized Rate = (1 + quarterly_rate)^4 - 1

Example:
25% quarterly growth = (1.25)^4 - 1 = 144.14%

For annual growth:

Annualized Rate = annual_rate
(no conversion needed)

Common Use Cases

  1. Performance Tracking

    • Monitor growth trends over time
    • Compare growth rates across different time periods
    • Track impact of strategic initiatives

  2. Investor Reporting

    • Convert monthly/quarterly metrics to annual rates
    • Compare performance to industry standards
    • Project future growth trajectories

  3. Strategic Planning

    • Set realistic growth targets
    • Understand compound growth effects
    • Plan resource allocation

Limitations

  • Growth rates assume consistent growth over the period
  • Past growth doesn't guarantee future performance
  • Extreme growth rates may not be sustainable long-term
  • Monthly/quarterly rates compound to large annual numbers

Tips for Interpretation

  1. Monthly Growth

    • Even small monthly rates compound to large annual numbers
    • Example: 10% monthly = 214% annual
    • Most SaaS companies see 5-15% monthly growth

  2. Quarterly Growth

    • More stable than monthly rates
    • Better for seasonal businesses
    • Example: 20% quarterly = 107% annual

  3. Annual Growth

    • Best for long-term trends
    • Industry benchmarking
    • Strategic planning

Related Metrics

Core Metrics

  • MRR Calculator
    • Track your monthly recurring revenue
    • Foundation for growth calculations

Growth Metrics

Financial Metrics

  • ARR Calculator
    • Convert monthly to annual metrics
    • Long-term growth planning