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What is Average Expansion Amount?

It’s the average amount of extra MRR you gain each time a customer expands. If 3 customers expanded this month and the total Expansion MRR is $300, the average expansion amount is $100.

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How to Calculate It

Average Expansion Amount = Total Expansion MRR / Number of expansion events
Example:
  • Customer A expanded by $50
  • Customer B expanded by $150
  • Customer C expanded by $100
Average = ($50 + $150 + $100) / 3 = $100

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Why It’s Useful

It tells you how big a typical upgrade is. If this number is growing, your customers are making bigger upgrades. If it’s shrinking, they’re expanding in smaller steps. Bigdelta calculates this automatically from your Expansion MRR events.