Revenue Growth Rate Calculator

Calculate month-over-month and year-over-year revenue growth rates. Track business momentum and growth trends.

Growth Rate
growthRate%
Revenue growth percentage
Revenue Increase
$revenueIncrease
Absolute revenue growth
Run Rate ARR
$runRateARR
Annualized revenue
Months to 2x
monthsToDouble
Time to double revenue at current rate
💡 Revenue Growth Benchmarks
• Early-stage SaaS target: 10-20% MoM growth
• Growth-stage SaaS: 5-10% MoM or 100%+ YoY
• Public SaaS companies: 25-50% YoY growth
• Rule of 40: Growth rate + Profit margin should exceed 40%
• Triple-triple-double-double (T2D3): 3x, 3x, 2x, 2x, 2x annual growth path to $100M ARR

Revenue Growth Rate

Growth rate measures how fast your revenue is increasing over time.

Formula

Growth Rate = ((Current - Previous) / Previous) × 100

Growth Rate Types

MoM (Month-over-Month): Short-term momentum indicator. Useful for tracking monthly trends and making quick adjustments.

QoQ (Quarter-over-Quarter): Smooths out monthly volatility. Better for seasonal businesses.

YoY (Year-over-Year): Long-term trend indicator. Eliminates seasonal effects, shows sustainable growth.

Example Calculation

Software company growing from $400k to $500k monthly revenue:

  • Growth rate: ($500k - $400k) / $400k = 25% MoM
  • Revenue increase: $100k absolute growth
  • Run rate ARR: $500k × 12 = $6M
  • Months to double: ~3.1 months at 25% MoM

Growth Milestones

The T2D3 path to $100M ARR: Triple revenue twice, then double three times. Starting from $1.5M ARR: Year 1 = $4.5M (3x), Year 2 = $13.5M (3x), Year 3 = $27M (2x), Year 4 = $54M (2x), Year 5 = $108M (2x).

Frequently Asked Questions

What is a good revenue growth rate?

Growth rates vary by stage and funding: Seed/Pre-seed 10-20% MoM (200-300% YoY), Series A 7-15% MoM (100-200% YoY), Series B+ 5-10% MoM (80-120% YoY), Public SaaS 25-50% YoY. Context matters: $10k to $20k MRR (100% growth) is easier than $10M to $20M ARR.

How do I calculate YoY vs MoM growth?

YoY (Year-over-Year): (This year revenue - Last year revenue) / Last year revenue × 100. MoM (Month-over-Month): (This month - Last month) / Last month × 100. Example: $400k last month, $500k this month = 25% MoM. $4M last year, $6M this year = 50% YoY. Use MoM for momentum, YoY for trends.

What is the Rule of 40?

Rule of 40: Growth rate % + Profit margin % should exceed 40 for healthy SaaS. Example: 30% growth + 15% margin = 45 (good). 50% growth - 20% margin = 30 (acceptable if investing in growth). Early-stage prioritizes growth, late-stage balances growth and profitability. Rule guides growth-efficiency tradeoff.

Related Calculators

ARR Calculator

Annual recurring revenue

MRR Calculator

Monthly recurring revenue

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