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★ 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.

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$
$
months

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.

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01

How it works

CMGR = (ending MRR ÷ starting MRR)^(1 ÷ months) − 1

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.

02

Worked example

MRR grew from $20,000 to $32,000 over six months.

MRR growth worked example
InputValue
Starting MRR$20,000
Ending MRR$32,000
Months between6 months
MRR growth8.1%
03

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.

04

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.
05

Questions founders actually ask

Why not just average the monthly growth rates?
Averages overweight volatile months and ignore compounding. CMGR gives the steady rate that actually connects the start and end values.
How do I convert monthly growth to annual growth?
Annual growth = (1 + monthly)^12 − 1. 5% a month is about 80% a year, not 60%.
What is T2D3?
A growth path described by Neeraj Agrawal of Battery Ventures: once a company reaches a few million in ARR, triple revenue for two years, then double for three. It is a reference point for venture-scale growth, not a requirement.
Should I use MRR or revenue?
MRR. Revenue includes one-off items that make growth look lumpy or inflated.
06

Related metrics

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07

More from the workbench

03 · Money & fundraisingRunway & Burn CalculatorMonths of cash left, the date it hits zero, and whether you are default alive.01 · Plan & scopeMVP Cost EstimatorPick features and who builds it. Get an hour-by-hour estimate, not an agency teaser.02 · AI & LLMsLLM API Cost CalculatorYour monthly bill across Claude, GPT, Gemini and open models, side by side.

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.

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