MRR Lab

Year-over-Year Growth Calculator

Calculate and track your year-over-year growth rate to measure business performance and trends.

Year-over-Year Growth Rate

25.0%

Required Monthly Growth for Target

2.8%

Monthly growth needed to achieve 40% annual growth

Previous year's MRR: $80k

Current year's MRR: $100k

Target annual growth rate percentage

How It Works

  1. Enter your previous year's MRR
  2. Enter your current year's MRR
  3. Set your target growth rate
  4. The calculator will show:
    • Your current YoY growth rate
    • Required monthly growth to hit your target
    • Growth trajectory visualization

Understanding the Results

YoY Growth Rate

The year-over-year growth rate is calculated using the formula:

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

Required Monthly Growth

To achieve your target annual growth rate, the required monthly growth rate is calculated using:

Monthly Growth Rate = (1 + Target Annual Growth Rate)^(1/12) - 1

Common Use Cases

  1. Growth Performance Analysis: Compare your current growth rate against industry benchmarks to assess performance.
  2. Target Setting: Set realistic growth targets based on historical performance and industry standards.
  3. Monthly Planning: Convert annual growth targets into required monthly growth rates for operational planning.
  4. Investor Reporting: Generate clear growth metrics for board meetings and investor updates.

Limitations

  • The calculator assumes consistent monthly growth to achieve annual targets
  • Historical data is limited to year-over-year comparison
  • Does not account for seasonal variations in growth
  • Growth projections are linear and may not reflect real-world complexity

Tips for Improvement

  1. Below Target Growth

    • Focus on reducing churn to improve net growth
    • Invest in customer acquisition to accelerate growth
    • Consider pricing optimization

  2. Maintaining High Growth

    • Ensure scalable infrastructure is in place
    • Monitor customer acquisition costs
    • Balance growth with profitability

  3. Sustainable Growth

    • Set realistic targets based on market size
    • Monitor cash burn rate alongside growth
    • Focus on customer success and retention

Related Metrics

Growth Metrics

Performance Metrics