Growth Metrics

Month-over-Month Growth (MoM)

The percentage change in a metric — typically MRR or users — from one month to the previous month.

MoM growth is the most granular growth measure, capturing momentum in real time. Early-stage SaaS businesses often target 10–20% MoM growth in their first year as a sign of strong traction. This compounds dramatically: 10% monthly growth produces approximately 200% annual growth. MoM growth is useful for detecting trend changes quickly — a sustained drop in monthly growth rate signals a problem months before it shows up in annual comparisons. However, MoM can be noisy: seasonal patterns, one-off enterprise deals, and holiday months distort the signal. Rolling three-month averages of MoM growth are more reliable than any single month. MoM growth rates naturally compress as the business scales — maintaining 10% monthly growth on $10M MRR requires adding $1M per month, which is mechanically harder than the same percentage on $100K MRR.