Free tool
MRR Calculator
Project your recurring revenue forward at a given monthly growth rate, compounded properly.
Where recurring revenue lands if the current growth rate holds — compounded month by month rather than added up.
- Current MRR
- Monthly growth rate
- Months to project
Project MRR
Example
Current MRR $10,000 · Monthly growth rate 10%
$31,384
MRR in 12 months
How it works
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1
Enter your numbers
Fill in current mrr, monthly growth rate and months to project. Change a number and the answer updates.
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2
Press project mrr
One button. Change any input afterwards and the answer updates as you type.
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3
Read the result
You get mrr in 12 months, plus implied arr, mrr added, growth multiple.
How compounding growth works
Projected MRR is current MRR multiplied by (1 + growth rate) raised to the number of months. At $10,000 MRR growing 10% a month, twelve months gives $31,384 — more than three times the starting point, not double.
That gap between intuition and arithmetic is the whole reason to run the numbers. Compounding is unintuitive in both directions: it rewards patience far more than people expect, and it punishes small rate differences far more than people expect.
What growth rate to use
Use net growth — new and expansion revenue minus churned and contracted revenue. Gross growth ignores the customers leaving and will overstate every projection you build on it.
For early-stage SaaS, 10% net monthly growth is strong and 15-20% is exceptional but usually temporary. The widely quoted 5% weekly figure from accelerator advice applies to the earliest months off a tiny base, not to a company with meaningful revenue.
Why long projections mislead
Growth rates decay. Maintaining 10% monthly at $10k MRR needs $1,000 of net new revenue; at $100k it needs $10,000; at $1m it needs $100,000 every month. Almost no company holds a constant percentage rate as the base grows, because the absolute amount required grows with it.
Treat anything beyond twelve to eighteen months as an illustration of the maths rather than a forecast. If you are modelling for a board or a raise, step the growth rate down over time — it is both more honest and more credible.
What this does not do
- Assumes the growth rate holds every month. Rates decay as the base grows, because holding a percentage means adding ever-larger absolute amounts.
- Ignores churn beyond whatever you have already netted out of the rate you entered.
- Accuracy falls away past twelve to eighteen months. Treat longer projections as an illustration of compounding, not a forecast.