What is MRR Growth Rate (MoM, QoQ, YoY)?
MRR growth rate tracks how your monthly recurring revenue changes over time, expressed as a percentage for each period (month, quarter, year).
MoM highlights short-term momentum, QoQ smooths out volatility to show medium-term execution, and YoY shows whether the business is compounding at a value-creation pace that justifies headcount, capital allocation, and valuation multiples.
Formula
Example
Assume a SaaS company has:
- MRR 12 months ago: $60,000
- Previous quarter-end MRR: $78,000
- Previous month MRR: $85,000
- Current MRR: $90,000
MoM MRR Growth = (90,000 − 85,000) / 85,000 ≈ 5.9%
QoQ MRR Growth = (90,000 − 78,000) / 78,000 ≈ 15.4%
QoQ Annualized ≈ (1 + 0.154)⁴ − 1 ≈ 77.3%
YoY MRR Growth = 90,000 / 60,000 − 1 = 50%
In this scenario, MoM shows solid recent momentum, QoQ and its annualized rate indicate breakout execution, and YoY confirms that recurring revenue has scaled by half over the last year—strong signals for NRR, CAC payback, and Rule of 40 analysis.