Expansion MRR
Expansion MRR definition for SaaS and AI founders: what it means, how to calculate it, and common pitfalls when reading it in dashboards.
Expansion MRR is the increase in recurring revenue from customers who were already paying — upgrades, extra seats, add-ons.
In practice
Its opposite is contraction MRR (downgrades). Both feed NRR.
Related terms
Related
- ARPAAverage MRR per paying customer.
- ARRAnnualized recurring revenue: MRR multiplied by twelve.
- CACSales and marketing spend per new customer.
- ChurnCustomers or recurring revenue lost in a period.
- COGSThe direct cost of delivering your product to existing customers.
- Contribution marginRevenue minus all variable costs, including variable sales costs.
See your real margin in five minutes.
Connect Stripe and your cost providers with read-only access. Free for two connections — no card required.