How it’s calculated
Future MRR = current MRR × (1 + net monthly growth rate)^months, where the net rate combines what you add and what you lose: net = (1 + gross new growth) × (1 − monthly churn) − 1. Growth compounds — each month's growth applies to an already-larger base, which is why steady single-digit monthly growth produces dramatic annual multiples.
net rate = (1 + new growth) × (1 − churn) − 1 MRR after n months = MRR today × (1 + net rate)ⁿ ARR = ending MRR × 12
Worked example
$10,000 MRR growing 6% per month with no churn, projected 12 months out.
- Ending MRR: ~$20,122 — a 2.01× year
- At 3% monthly growth the same base reaches ~$14,258 (1.43×)
What’s a good number?
Early-stage SaaS often targets 10–15% monthly growth; post-product-market-fit companies commonly sit at 3–8% monthly. A useful frame: 5% monthly ≈ 1.8× per year, 10% monthly ≈ 3.1× per year.