Expansion Revenue Calculator
Covering churn makes the base self-sustaining.
Expansion MRR
$1,025
covers 33.1% of churn
Expansion covers 33.1% of churn. Reaching 100% would make the base self-sustaining — usually a cheaper goal than the equivalent increase in acquisition.
How the Expansion Revenue Calculator works
When expansion exceeds churn, the existing base grows without acquiring anyone. That is the strongest position a subscription business can reach, and getting there is usually cheaper than the equivalent increase in acquisition spend.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is expansion revenue?
Additional recurring revenue from existing customers — upgrades, seat additions, usage growth, add-ons. It is the cheapest revenue in the business because there is no acquisition cost.
What is negative churn?
When expansion exceeds churn and contraction, so the cohort's revenue grows over time even as customers leave. It is what allows net revenue retention above 100%.
How do I create expansion?
Pricing that scales with the value the customer receives — seats, usage, features unlocked by growth. A flat price with no expansion path caps every account at its entry value.
Is expansion better than new business?
Cheaper, certainly. But it depends on an existing base, so it cannot substitute for acquisition — it multiplies the value of acquisition already done.