MRR Expansion Tracking
Track expansion MRR to isolate growth from new logos.
Quick checklist
- Separate expansion from new MRR.
- Track expansion by plan and segment.
- Reconcile with billing data monthly.
- Compare expansion to churn impact.
- Monitor downgrade pressure.
Step-by-step
- Export starting MRR by cohort.
- Sum expansion MRR from upgrades and add-ons.
- Subtract churn and downgrades.
- Calculate net new MRR.
- Track trends by plan.
What to watch
- Expansion masking rising churn.
- One-time fees inflating MRR.
- Mixing annual and monthly periods.
Common mistakes
- Counting new logos as expansion.
- Ignoring contraction in expansion totals.
- Changing definitions between teams.
