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Understanding Monthly Recurring Revenue (MRR) Growth Rate

mrr growth rate

Introduction to Monthly Recurring Revenue (MRR) Growth Rate

One of the key metrics that app developers should monitor is the Monthly Recurring Revenue (MRR) Growth Rate. MRR Growth Rate is a measure of the month-over-month percentage increase or decrease in your app’s revenue. In simpler terms, it tells you by what percentage your revenue has grown (or shrunk) compared to the previous month. This metric is essential for understanding the financial trajectory of your app. It helps in forecasting future revenue, planning for expansion, or identifying the need for strategic adjustments.

Screenshot of MRR Growth Rate metric

How We Calculate MRR

Calculating MRR Growth Rate involves a straightforward formula:

  1.     Subtract the MRR from 30-days ago from the current MRR.
  2.     Divide this difference by the MRR from 30-days ago.
  3.     Multiply the result by 100 to convert it into a percentage.

This formula gives you the growth rate, which can either be positive, indicating growth, or negative, indicating a decline in revenue.

MRR Growth Rate % = ((Current MRR – MRR 30-days ago) / MRR 30-days ago) * 100

More Insights and Metrics

For those looking to dive deeper into their financial metrics, we offer additional resources:

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MRR Growth Rate availability

The MRR Growth Rate metric is available to all customers subscribed to the Metrics Plan. It’s designed to provide actionable insights, helping Shopify App Developers optimize their revenue streams and grow their businesses sustainably.

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