Plain-language questions
Ask for expansion MRR per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Subscriptions and SaaS
Expansion MRR: formula and example.
Expansion MRR is the additional MRR existing customers add in a period, for example through a higher plan, extra seats, add-ons or higher usage. New customers and reactivations are not included. Expansion MRR shows how much growth comes from your existing customer base.
Expansion MRR formula
Sum of MRR increases from existing customers in the period (as a rate: ÷ starting MRR × 100%)
Worked example
In September, customers of Acme's subscription service upgrade to higher plans worth €600 a month and add extra seats worth €300 a month. Expansion MRR is €600 + €300 = €900. Against starting MRR of €40,000, that is €900 ÷ €40,000 × 100% = 2.25%.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
More expansion MRR means existing customers find more value in your product and grow with it. Growth from expansion is usually cheaper than growth from new customers, since there is no new customer to acquire. Compare it with contraction and churn over the same period, and check whether expansion comes from many customers or a few large ones.
Pitfalls with expansion MRR
- Counting a price increase for all customers as expansion without showing it separately.
- Counting a customer who downgrades and then upgrades again as expansion instead of looking at the net change.
- Booking reactivations of previously churned customers as expansion.
SQL & DAX
Calculating expansion MRR in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT month,
SUM(amount) FILTER (WHERE movement_type = 'expansion') AS expansion_mrr,
SUM(amount) FILTER (WHERE movement_type = 'new') AS new_mrr,
COUNT(DISTINCT customer_id) FILTER (WHERE movement_type = 'expansion') AS expanding_customers
FROM mrr_movements
GROUP BY month
ORDER BY month;Expansion MRR =
CALCULATE(SUM(MrrMovements[amount]), MrrMovements[movement_type] = "expansion")
Expansion Rate % =
DIVIDE([Expansion MRR], CALCULATE([MRR], DATEADD('Date'[Date], -1, MONTH)))In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
What is expansion MRR?
Expansion MRR is the additional monthly recurring revenue you gain from existing customers, for example through upgrades, extra seats or add-ons. It is one component of net new MRR, alongside new, contraction, churned and reactivation MRR. The higher it is, the more of your growth comes from existing customers.
How do you calculate expansion MRR?
Add up each customer's increase in MRR compared with the previous month, only for customers who were already active. If a customer's MRR falls, that is contraction, not negative expansion. As a rate, divide the total by MRR at the start of the period.
How can you increase expansion MRR?
Common levers are pricing that grows with usage or seats, clear upgrade paths and add-on modules for specific needs. Customers who actively use the product expand more often, so expansion tends to go hand in hand with activation and usage. Measure where expansion comes from by customer segment.
Further reading
- KPI librarySaaS KPIs: MRR, churn and more explainedSubscription KPIs track recurring revenue: what comes in, what grows and what drops away. The data comes from your subscription or payment system and your CRM.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
Use AI on your own data. Securely, and without the headache.
In an online demo we show how ENABLE makes your data securely available and how you build on it: describing an app in the AI Builder, plain-language questions, dashboards and APIs. And how we set it up and manage it for you.