CMGR Calculator
Calculate the compound monthly growth rate between two points and see your smoothed growth trajectory.
Compound monthly growth rate
What it measures
CMGR is the steady monthly rate that would take you from the starting value to the ending value: the ratio raised to one over the number of months, minus one.
Why it matters
Month on month growth is noisy. CMGR smooths it into a single honest rate, which is also the number accelerators and investors ask for.
A worked example
Growing from 10,000 to 18,000 MRR in a year is a 5 percent CMGR, even if individual months bounced between 0 and 12.
How to read and improve it
Care about the trend in CMGR across quarters more than the level in any one of them.
Frequently asked questions
Why not average the monthly rates?
Averaging overstates growth because it ignores compounding. CMGR is the geometric answer.
What is a good CMGR?
Early SaaS often targets 10 to 15 percent monthly. Past a few million ARR, 5 percent monthly is strong.
More in SaaS metrics: SaaS CAC Calculator · Customer Lifetime Value Calculator · Churn Rate Calculator
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