What is Expansion MRR?
Expansion MRR is the extra monthly revenue from existing customers who pay you more than before. This happens when a customer upgrades their plan, adds seats, or buys an add-on.How to Calculate It
Expansion MRR = New MRR amount − Previous MRR amount (for each customer who increased)Example: a customer was on the $49/month plan and upgrades to $99/month. Expansion MRR = $99 − $49 = $50 If 3 customers expand this month:
- Customer A: $49 → $99 = $50
- Customer B: $99 → $149 (added seats) = $50
- Customer C: $49 → $69 (added add-on) = $20
Where It Fits
Expansion MRR is one of five MRR movement types: Net New MRR = New + Expansion + Reactivation − Contraction − Churn Expansion MRR is the best kind of growth. You’re earning more from customers you already have — no acquisition cost. Bigdelta tracks Expansion MRR automatically as an activity on each account.FAQ
Expansion MRR vs New MRR?
Expansion MRR vs New MRR?
New MRR is from first-time customers. Expansion MRR is from existing customers paying more.
What counts as expansion?
What counts as expansion?
Plan upgrades, added seats, added add-ons — anything that increases a customer’s recurring payment.