# Expansion MRR

> Expansion MRR is the additional monthly recurring revenue generated from existing customers through plan upgrades or the purchase of add-ons.

- **URL**: https://dodopayments.com/glossary/expansion-mrr

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## 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.

## Learn More

- [SaaS metrics and KPI guide](https://dodopayments.com/blogs/saas-metrics-kpi)
- [How to build predictable recurring revenue](https://dodopayments.com/blogs/build-predictable-revenue)
- [Recurring revenue models and benchmarks](https://dodopayments.com/blogs/recurring-revenue)