Why Use This CMGR Calculator
Simple average growth rates hide compounding effects and distort performance reporting. This CMGR calculator enables you to:
- 📈 Measure True Compounding Velocity — calculate exact geometric monthly growth without arithmetic distortions.
- 🎯 Benchmark Venture Milestones — evaluate whether your monthly growth meets VC expectations (e.g. 10%+ CMGR for Seed).
- 📅 Convert Monthly Growth to Annualized Rate — see what a monthly CMGR yields over a full 12-month period.
- 🔮 Project Next-Month MRR — extrapolate compounding growth into upcoming quarters.
CMGR Formulas
\[\text{CMGR (\%)} = \left[ \left(\frac{\text{Ending Revenue}}{\text{Starting Revenue}}\right)^{\frac{1}{N}} - 1 \right] \times 100\] \[\text{Total Growth (\%)} = \frac{\text{Ending Revenue} - \text{Starting Revenue}}{\text{Starting Revenue}} \times 100\] \[\text{Annualized Equivalent (\%)} = \left[ (1 + \text{CMGR})^{12} - 1 \right] \times 100\]Where $N$ is the duration in months.
SaaS CMGR Benchmark Benchmarks
| Startup Phase | Target Monthly CMGR | Equivalent Annual Growth | VC Expectation |
|---|---|---|---|
| Early Seed (< $500k ARR) | 10% – 15% / mo | 213% – 435% / yr | High growth momentum & PMF discovery |
| Series A ($1M – $5M ARR) | 6% – 10% / mo | 101% – 213% / yr | Repeatable sales engine & scaling |
| Series B ($5M – $20M ARR) | 4% – 6% / mo | 60% – 101% / yr | Market expansion & retention efficiency |
How to Use This CMGR Calculator
- Enter Starting Revenue / MRR ($) at Month 0.
- Enter Ending Revenue / MRR ($) at Month N.
- Enter Duration (Number of Months).
- Review CMGR %, Total Growth %, and Annualized Equivalent Growth Rate (%).
Frequently Asked Questions
What is Compound Monthly Growth Rate (CMGR)?
CMGR is the geometric average month-over-month growth rate required for a business to grow from a starting revenue figure to an ending revenue figure over a specific number of months.
What is the formula for CMGR?
CMGR (%) = [(Ending Revenue / Starting Revenue)^(1 / N) − 1] × 100, where N is the number of months.
Why is CMGR superior to Average Monthly Growth Rate?
Arithmetic average monthly growth rate distorts true performance due to compounding. CMGR provides the exact geometric compounding rate.
What is a good CMGR percentage for SaaS startups?
For early-stage startups ($0–$1M ARR), 10%–15%+ CMGR is top-tier (3x–5x annual growth). For Series A ($1M–$5M ARR), 5%–8% CMGR is benchmark.
How do you annualize a monthly CMGR figure?
Annualized Rate (%) = [(1 + CMGR)^12 − 1] × 100.
Can CMGR be used for non-revenue metrics like Active Users?
Yes! CMGR can be used to measure compounding monthly growth for Monthly Active Users (MAU), lead volume, or website traffic.
How does CMGR compare to CAGR?
CAGR measures annual compounding over years. CMGR measures monthly compounding over months.