What is expansion monthly recurring revenue?
Expansion Monthly Recurring Revenue (MRR) is additional MRR (upsells, cross-sells, add-ons) from existing customers compared to a monthly basis. Expansion MRR does not include revenue from new customers.
| Expansion MRR % = | MRR at the end of the Month – MRR at the Start of the Month from the Same Customers at the Start of the Month |
| MRR at the Start of the 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 the end of the month from the same customers at the start of the month – 2,800 MRR at the start of the month) ÷ 2,800 MRR at the start of the month].
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