What is a good ARR growth rate?
ARR growth rate benchmarks only make sense in the context of scale. Doubling from 1,000,000 to 2,000,000 dollars is routine; doubling from 100,000,000 to 200,000,000 dollars is extraordinary.
The well-known T2D3 path, triple, triple, double, double, double, describes the trajectory of elite SaaS companies from a few million to hundreds of millions in ARR.
Short answer
A good ARR growth rate falls with scale. Early-stage SaaS can double or triple ARR yearly; at 10,000,000 dollars and beyond, sustaining 40 to 60 percent is strong, and top companies follow a triple, triple, double, double, double path. Growth naturally decelerates as the base grows, so judge it against your revenue stage.
Key takeaways
- Growth rate should be judged against ARR scale.
- Early stage: doubling or tripling per year.
- At scale (past 10M): 40 to 60 percent is strong.
- T2D3 (triple, triple, double, double, double) is the elite path.
Growth benchmarks by stage
From 1 to 10,000,000 dollars, top companies often triple ARR. From 10 to roughly 100,000,000 dollars, doubling is the elite bar. Past 100,000,000 dollars, sustaining 40 to 50 percent growth is exceptional. The law of large numbers makes each stage harder than the last.
Growth alone is not enough; efficiency matters. A company growing 80 percent while burning unsustainably can be worse off than one growing 40 percent efficiently. Judge growth beside the burn multiple and Rule of 40.
How Ardovo handles it
Ardovo tracks ARR growth against your scale and pairs it with efficiency metrics, so growth is never judged in isolation. Rook decomposes the growth rate into new and expansion so you see whether it is durable or dependent on new logos.
Frequently asked questions
What is a good ARR growth rate?
It depends on scale. Early-stage SaaS can double or triple yearly; past 10,000,000 dollars, 40 to 60 percent is strong; past 100,000,000 dollars, 40 to 50 percent is exceptional. Growth naturally slows as the base grows.
What is the T2D3 growth path?
Triple, triple, double, double, double: the trajectory of elite SaaS companies growing ARR from a few million to hundreds of millions over roughly five years. It is a benchmark for best-in-class hypergrowth.
Is faster ARR growth always better?
Not if it comes with unsustainable burn. Growth must be judged beside efficiency metrics like the burn multiple and Rule of 40. Efficient 40 percent growth can beat inefficient 80 percent growth that consumes too much cash.