Expansion MRR

What is Expansion MRR?

Expansion MRR is the additional monthly recurring revenue generated from existing customers through plan upgrades or the purchase of add-ons. It is a subset of expansion revenue that specifically focuses on the monthly recurring component.

Why It Matters

• It is a primary indicator of a product’s ability to grow within an existing account.

• High expansion MRR can lead to negative net churn, which is a powerful driver of exponential growth.

• It demonstrates that customers are finding more value in the product as they use it more deeply.