Upgrade/add-on revenue from existing users. The Expansion Revenue Calculator takes mrr from upgrades, mrr from add-ons and seats, mrr at the start of the period and returns expansion mrr plus expansion rate, expansion arr. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Startup metrics are about the efficiency of growth: how much it costs to win and keep customers, how fast recurring revenue compounds, and how long the cash lasts. Investors read these numbers before they read the pitch. Use the worked example below to check the maths against your own figures.
How the Expansion Revenue Calculator works
Expansion revenue from existing customers is what pushes net revenue retention above 100%. Products with usage-based or seat-based pricing generate the most of it.
Worked example
With the example values (mrr from upgrades of $5,000, mrr from add-ons and seats of $2,000, mrr at the start of the period of $100,000), the expansion mrr is $7,000.00; expansion rate 7%, expansion arr $84,000.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is expansion mrr calculated?
expansion MRR = upgrades + add-ons; expansion rate = expansion MRR ÷ starting MRR.
Which figures do I need?
Mrr from upgrades, mrr from add-ons and seats, mrr at the start of the period. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What do investors consider healthy?
Common benchmarks: LTV:CAC above 3, CAC payback under 12–18 months, net revenue retention above 100%, monthly churn under 2% for SMB and under 1% for enterprise, and at least 12–18 months of runway.
