What is Expansion MRR?

Expansion MRR is the additional monthly recurring revenue generated this month compared to last month, excluding the MRR contributed by new subscribers.
Expansion MRR is created by subscribers when:
  • Moving from a free plan to a priced plan
  • Moving from a lower-priced plan to a higher-priced plan
  • Purchasing of recurring add-ons
  • Reactivating a canceled subscription
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How to calculate expansion MRR?

            Expansion MRR (This Month) = Sum (Upgrades + Free to Paid Conversions + Reactivations) from last month to this month.

How should a business interpret expansion MRR?

An increase in this number indicates that the revenue generated from your existing customer base is growing. This is great news for your business, showing it’s growing without adding new customers, or without spending on acquiring new customers. More often than not an increase in expansion MRR can be tied back to a pricing change, or activities promoting customer success. Always try to keep this higher than the Gross MRR Churn metric.