Definition
MRR growth rate is how fast monthly recurring revenue grows from one month to the next.
Formula
MRR growth rate = (MRR this month − MRR last month) ÷ MRR last month × 100.
Example
From $40,000 to $43,000 is 7.5% growth.
Reading it
Look at what drove it, new customers, expansion, or less churn, using the MRR components. Growth from new customers alone, with rising churn, isn't durable.