How the expansion MRR calculator works
Expansion MRR is the incremental monthly recurring revenue gained from existing accounts. It can come from plan upgrades, more users or additional recurring products. Separating these sources makes account growth easier to understand than looking only at the change in total company MRR.
Enter the increase, not the customer's entire new subscription value. If an account moves from 200 to 300 per month, expansion is 100. The annualized output multiplies incremental MRR by twelve to show the recurring run rate; it does not represent cash already collected or revenue recognized during the year.
Expansion MRR = upgrade MRR + additional-seat MRR + cross-sell MRR; expansion share = expansion MRR ÷ starting MRR × 100
Worked example
Start with the example inputs below. The calculator opens with these values; reset the example at any time to compare your own scenario. Monetary examples use GBP, and all amounts must use the same currency.
| Measure | Value |
|---|---|
| Starting total MRR | 100000 |
| Upgrade expansion MRR | 5000 |
| Additional-seat expansion MRR | 3000 |
| Cross-sell expansion MRR | 2000 |
| Measure | Value |
|---|---|
| Total expansion MRR | £10,000.00 |
| Expansion relative to starting MRR | 10% |
| Annualized expansion run rate | £120,000.00 |
Use incremental monthly recurring amounts. The annualized run rate assumes expansion persists and excludes churn and contraction.
How to use the result
Make categories mutually exclusive. If an upgrade includes more seats, allocate the incremental value once according to a documented rule rather than entering it under both upgrades and seats. Convert annual subscriptions to their monthly equivalent before adding them to MRR.
Compare expansion with starting MRR to see its scale, then use a separate retention calculation to include churn and contraction. Account growth can be strong while total MRR still falls if losses elsewhere are larger.
Assumptions and common mistakes
One-off onboarding fees, implementation projects and non-recurring purchases are not MRR. The expansion share shown here uses starting total MRR, not a different vendor's expansion-growth definition. Reactivated accounts are excluded from these categories and should be reported separately for reconciliation.