ARR growth rate benchmarks vary significantly by company stage. What constitutes "excellent" at $500k ARR would be deeply concerning at $50M ARR — the denominator grows, and maintaining high percentage growth requires an ever-larger new ARR engine.
Growth rate benchmarks by ARR stage
| ARR stage | Below average | Average | Good | Excellent |
|---|---|---|---|---|
| < $1M | < 50% | 50–100% | 100–200% | 200%+ |
| $1M–$3M | < 60% | 60–100% | 100–150% | 150%+ |
| $3M–$10M | < 50% | 50–80% | 80–120% | 150%+ |
| $10M–$30M | < 40% | 40–60% | 60–100% | 100%+ |
| $30M–$100M | < 25% | 25–40% | 40–60% | 70%+ |
| $100M+ | < 20% | 20–30% | 30–50% | 50%+ |
Source: Benchmarks derived from Bessemer Venture Partners State of the Cloud, OpenView Product Benchmarks, and public SaaS company filings (2022–2026).
The "Rule of X" for later-stage SaaS
For Series B and beyond, investors increasingly use the Rule of X (or Rule of 40 for profitability-focused companies):
Rule of 40 = ARR growth rate + free cash flow margin ≥ 40%
A company growing 60% YoY with -20% FCF margin scores 40 (passing). One growing 25% with 15% FCF margin also scores 40. Both are considered healthy by different stakeholders.
Rule of X (Bessemer) applies a multiplier to revenue growth vs profitability: growth rate × 2 + FCF margin ≥ 40. This weights growth more heavily for high-multiple markets.
The NRR multiplier
Companies with Net Revenue Retention > 120% can sustain lower new-logo acquisition growth because their existing base compounds. At 120% NRR, even 30% new customer growth delivers effective 56% ARR growth.
Use the ARR Growth Rate Calculator to see where your current growth rate sits against these benchmarks.