Definition
Expansion bookings are new contracted revenue from existing customers (upsells, seat expansion, upgrades) in a period.
Formula
Expansion bookings = bookings from existing customers
Example
If 30 customers upgrade and add $150k ARR, expansion bookings are $150k.
How to use it
- Separate expansion from new bookings to see growth mix.
- Use consistent contract terms so expansion is comparable over time.
Common mistakes
- Blending expansion with new logos and losing visibility into retention health.
- Counting renewals as expansion when price or scope is unchanged.
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "Expansion Bookings" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Sanity-check with a related calculator from the same category on MetricKit.
- Read the related guide (e.g., Retention & churn hub: cohorts, GRR/NRR, and retention curves) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Net New MRR Calculator: Calculate net new MRR from new, expansion, contraction, and churned MRR.
- MRR Waterfall Calculator: Build an MRR waterfall: starting MRR + new + expansion - contraction - churn = ending MRR.
- SaaS Quick Ratio Calculator: Calculate the SaaS quick ratio: (new + expansion) / (contraction + churn).
- Rule of 40 Calculator: Calculate the Rule of 40 score: growth rate (%) + profit margin (%).
- Net New ARR Calculator: Calculate net new ARR from new, expansion, contraction, and churned ARR movements.
Guides
- Retention & churn hub: cohorts, GRR/NRR, and retention curves: A practical hub for retention measurement: churn rate, GRR/NRR, cohort retention curves, and how to set retention targets without getting misled by noise.
- Sales ops metrics hub: quota, pipeline, win rate, and capacity planning: A practical hub for sales ops planning: quota attainment, pipeline coverage, required pipeline, sales capacity with ramp, and OTE math.