What is a good MRR growth rate for SaaS?
Short answer
Pre-PMF: anything > 0 is fine. Post-PMF early-stage: 10–15% MoM is YC-tier. Past $1M ARR: 5–8% MoM (compounding to 80–150% YoY) is excellent.
Growth rate compounds, so the bar gets steeper-feeling but actually lower over time. 15% MoM at $10k MRR is normal; 15% MoM at $5M MRR would be a generational outlier.
Net revenue retention (NRR) is the silent partner of growth rate. A SaaS with 10% MoM new-logo growth and 85% NRR is treading water; one with 5% MoM growth and 130% NRR is compounding fast.
| Segment | Low | Typical | High |
|---|---|---|---|
| Pre-PMF (under $10k MRR) | 0% | 5% | 30%+ |
| Post-PMF early ($10k–$100k MRR) | 5% | 12% | 25% |
| Scale stage ($100k–$1M MRR) | 4% | 8% | 15% |
| Past $1M ARR | 2% | 6% | 10% |
Caveats
- Annualizing a single month of growth is statistically unreliable below ~$50k MRR.
- Healthy growth at unhealthy CAC payback is just funded losses, not a business.
- Net new MRR (new + expansion − churn − contraction) is the honest growth metric, not gross new MRR.