Compound Monthly Growth Rate (CMGR) is the average monthly growth over a period. SaaSGrid calculates Last 6 Months (L6M) and Last 12 Months (L12M) CMGR. The formula for CMGR, where n = 6 for L6M CMGR or n = 12 for L12M CMGR, is:
CMGR = (ARR÷ARR n months ago)1/n —1
It's helpful to look at CMGR, versus just the raw growth over a period, because it shows the consistent growth rate on a monthly basis, smoothing out spikes and normalizing longer periods as a monthly growth rate.
