Revenue

What is Net MRR Growth Rate?

Net MRR Growth rate is the net increase or decrease in monthly recurring revenue from one month to the next.

How is Net MRR Growth calculated?


            Net MRR Growth Rate = (New MRR + Reactivation MRR + Upgrade MRR) - (Cancellation MRR + Downgrade MRR) * 100
        
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How should a business interpret expansion MRR?

Your Net MRR Growth considers new revenue, expansions, and contractions (downgrades and cancellations). There are three keys to ensure overall profitability — minimize churn, drive upgrades from existing customers, and, add new paying customers. It shows you how fast your business is growing. For instance, a Net MRR growth of 15% month on month, translates to a 2x revenue growth every 6 months.