MRR growth (Monthly Recurring Revenue Growth) evaluates a company's MRR growth over time. Subscription-based businesses utilize it to track growth and performance as a percentage.
Comparing the current month's MRR to the prior month's and expressing the difference as a percentage yields MRR growth. MRR growth is 20% ($12,000 - $10,000) / $10,000.
MRR growth is important for subscription-based firms since it shows the predictable monthly income stream. It can reveal customer behavior patterns and inform development and expansion decisions. It can also predict revenue growth by measuring customer retention and growth.