Work out expansion revenue instantly with clear inputs, formula shown and shareable results.
Expansion revenue comes from existing customers spending more through upgrades, additional products or extra seats. It is the cheapest revenue a business can win, since there is no acquisition cost attached to it.
Expansion rate
Expansion MRR = upsell + cross-sell + seat growth; rate = expansion / starting MRR
Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.
It carries no acquisition cost and usually converts at far higher rates than new business.
Seat expansion scales automatically with customer growth, making it the most durable of the three.