Expansion Monthly Recurring Revenue (MRR) is additional MRR (upsells, cross-sells, add-ons) from existing customers compared over a running monthly basis. Expansion MRR does not include revenue from new customers.
| Expansion MRR % = | MRR at End of Month – MRR at Start of Month from the Same Customers at the Start of the Month |
| MRR at Start of Month |
EXAMPLE:
You want to know your expansion MRR.
First, calculate your expansion revenue.
- Your business enters January with an MRR of $2,800.
- Your business exits January with an MRR of $3,000 from the same customers at the start of the month.
Your expansion MRR % is 7.1%. [(3,000 MRR at end of month from the same customers at the start of the month – 2,800 MRR at start of month) ÷ 2,800 MRR at the start of month].