What Is Expansion MRR?
Additional monthly recurring revenue generated from existing customers through upgrades, add-ons, or increased usage.
Additional monthly recurring revenue generated from existing customers through upgrades, add-ons, or increased usage.
Expansion MRR is the additional recurring revenue generated from existing customers through plan upgrades, add-on purchases, seat increases, or usage-based growth. It's a key driver of net revenue retention.
Strong expansion MRR is the hallmark of a successful SaaS product — it means customers find increasing value over time. Companies with strong expansion can achieve net negative churn, where revenue from existing customers grows faster than losses.
Strategies to increase expansion MRR include usage-based pricing, tiered feature sets, seat-based pricing with team growth, and strategic add-on products.
Formula
Expansion MRR = Sum of all revenue increases from existing customers in a month
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Is your pricing page leaking upgrades?
Personalized report, 7-day refund. The $19 is credited toward the $299 Pricing Decision + Rewrite.