Expansion Monthly Recurring Revenue (MRR)

« Back to Glossary Index

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].


Back to the Churnopedia: SaaS Terms and Metrics

« Back to Glossary Index