Expansion MRR Calculator — Measure Upsell Velocity and Net Negative Churn
Track upsells and add-ons to calculate net expansion MRR rate and its impact on overall growth
How to Use Expansion MRR Calculator — Measure Upsell Velocity and Net Negative Churn
How to Use the Expansion MRR Calculator
Step 1: Enter Your Starting Point
Enter your Starting MRR for the period (typically the MRR at the start of the month or quarter), along with New MRR from brand-new customers and Churned MRR from cancellations — these give context for total growth.
Step 2: Enter Expansion Revenue by Cohort
Break down your expansion revenue from existing customers into:
- Upsell MRR — revenue from customers upgrading to a higher plan
- Cross-sell MRR — revenue from customers buying additional products
- Add-on MRR — revenue from extra seats, features, or usage
- Downgrade MRR — revenue lost from customers moving to lower plans (contraction)
Step 3: Read the Expansion Rates
- Gross Expansion Rate = (Upsell + Cross-sell + Add-on) ÷ Starting MRR
- Net Expansion Rate = (Gross Expansion − Downgrades) ÷ Starting MRR
Step 4: Check Your Expansion Quality Rating
- Excellent (≥ 10%) — strong negative churn, existing customers are a major growth engine
- Healthy (5% – 10%) — solid expansion revenue contribution
- Modest (0% – 5%) — some expansion, but limited impact
- Flat (0%) — expansion offset exactly by downgrades
- Contracting (< 0%) — downgrades are outpacing expansion revenue
Step 5: Review Growth Contribution
The chart shows what share of total MRR growth (new + expansion) comes from expansion versus new business, plus a cohort breakdown of upsell, cross-sell, add-on, and downgrade revenue.
Frequently Asked Questions
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