# MRR Growth Rate Calculator

URL: https://www.paydude.io/resources/tools/mrr-growth-rate-calculator
Type: Free interactive calculator
Summary: Project MRR forward at a monthly growth rate. See your doubling time and the month you reach $10K, $100K and $1M.

Eight percent a month sounds modest. It is 152% a year, and it doubles your business every nine months. The gap between how the monthly number feels and what it compounds to is the whole reason to run this.

## Summary

8% monthly is 152% annually — compounding is not intuitive. Doubling time is 72 ÷ growth rate, roughly. Growth rates almost always decline as the base grows. Use net growth, after churn, or the projection is fiction.

## Monthly to annual

**What each monthly rate compounds to**

| Monthly | Annual | Doubling time |
| --- | --- | --- |
| 2% | 26.8% | 35 months |
| 5% | 79.6% | 14 months |
| 8% | 151.8% | 9 months |
| 10% | 213.8% | 7.3 months |
| 15% | 435.0% | 5 months |

The famous startup benchmark of 5–7% weekly is roughly 20–30% monthly, which annualises to somewhere between 800% and 2,200%. It is achievable only from a very small base, which is exactly the point of the benchmark.

> **Constant growth is a projection, not a forecast:** Growth rates decline as the base grows — adding $10,000 of MRR is a 40% jump at $25,000 and a 1% jump at $1M. Any straight compounding projection beyond about a year is an upper bound, not a plan.

## Use net growth

The rate to enter is net of churn: this month''s MRR divided by last month''s, minus one. Using gross new MRR ignores everything leaving and produces a projection that never arrives.

If gross and net growth differ substantially, the [quick ratio](https://www.paydude.io/resources/tools/quick-ratio-calculator) will tell you how much of your acquisition is being consumed by churn.

## The rule of 72

Divide 72 by your monthly growth percentage for an approximate doubling time in months. At 8%, that is nine months — close enough to the exact 9.01 to do in your head.

**Growth you keep more of** Lower payment fees on every dollar of the compounding. — [See pricing](https://www.paydude.io/pricing)

## Frequently asked questions

### What is a good monthly MRR growth rate?

It depends heavily on stage. Very early companies can grow 15–20% monthly from a small base. At $1M ARR, 10% monthly is exceptional and 5% is strong. At $10M, 3–5% monthly is very healthy.

### Should I use gross or net growth?

Net — this month's MRR divided by last month's, minus one. It already accounts for churn. Using gross new MRR produces a projection that ignores everything leaving and will never be reached.

### Why do growth rates decline over time?

Because the denominator grows. Adding $10,000 of MRR is 40% growth at $25,000 MRR and 1% at $1M. Maintaining a constant percentage requires adding ever-larger absolute amounts, which is why projections assuming constant rates overshoot.

### What is the rule of 72?

Divide 72 by your growth rate to approximate the doubling period. At 8% monthly growth, 72 ÷ 8 = 9 months, which is almost exactly right. It works for any compounding rate.