Average Expansion Amount
The typical size of an upgrade — whether your expansion comes from many small bumps or a few big ones.
What is it?
Average Expansion Amount is the typical size of an upgrade — total Expansion MRR divided by the number of expansion events in the period. Where expansion MRR tells you how much you gained, the average tells you whether it came from many small bumps or a few large ones.
It is a read on how your expansion motion works. A rising average means customers take bigger steps up when they expand; a flat average with rising expansion MRR means you are simply getting more upgrades of the same size.
How to calculate?
Divide total Expansion MRR by the count of expansion events. Three upgrades of $50, $150 and $100 average $100. Count events, not customers — a customer who expands twice in the period contributes two events.
Read it beside average contraction: if the typical upgrade is smaller than the typical downgrade, your existing base is trading down even when expansion looks healthy in total.