Track your MRR against a doubling line

What it does

Doubling every six months takes about 12% growth a month, every month: 1.12 to the sixth power is about 2. Half that pace, 6% a month, still doubles you in a year. Draw both lines from today’s MRR, and at every month-end you know whether you’re on pace, behind or ahead, months before a flat quarter tells you.

What you need

• Your MRR today, after churn, from your billing tool
• The same billing report at every month-end
• A spreadsheet

How it works

1. 1

   Read today’s MRR, and write down what it leaves out

   Take MRR after churn from your billing tool, as of today. Write down the report’s name and what it leaves out, like one-time fees, services and taxes. Every later check has to use the same report, the same exclusions and the same currency, or the line means nothing.

2. 2

   Draw the two lines

   Month 0 is today. The 12% line is your MRR × 1.12 to the power of the month. The 6% line is the same with 1.06.

   Google Sheets: put today’s MRR in F1, then paste into A1 and fill rows 3 to 14 down

   Month	12% line, doubles in 6 months	6% line, doubles in 12	Actual MRR
   0	=$F$1	=$F$1
   =A2+1	=$F$1*1.12^A3	=$F$1*1.06^A3

3. 3

   Log MRR at every month-end

   Within a few days of each month-end, read MRR from the same report and put it in column D. Save a dated screenshot. Compare levels, not each month’s growth rate: one big month followed by a flat one is fine if you’re still above the line.

4. 4

   Read the gap

   • Above the 12% line: you’re doubling faster than every six months. Find out what’s working, and put more behind it.
   • Between the lines: you’re on pace to double within a year, not within six months. Look for the letter that would close the gap with your ceiling.
   • Below the 6% line: something’s leaking. Check churn first, then win rate, then qualified opportunities.
5. 5

   Act on two misses in a row

   Below the 6% line at two month-ends in a row, write a one-page recovery plan: which letter, what changes this month, and what you’ll look at every week until you’re back above the line.

What good looks like

One glance at the sheet tells you whether you’re on pace, and the conversation moves from “how do we feel about growth” to “which letter slipped this month”.

Mistakes to skip

• Switching reports or definitions halfway. One change in what counts as MRR and every comparison after it is off.
• Counting one-time fees or services as MRR. They inflate the month and fall away the next.
• Judging by one month’s growth rate. Compare your MRR with the line at each month-end, not each month with the last.