Upsell Rate

What is Upsell Rate?

Upsell Rate measures the percentage of existing customers who purchase an upgraded, higher-tier, or add-on product/service beyond their original purchase. It reflects the effectiveness of sales, customer success, and marketing efforts in driving expansion revenue from the existing customer base.

How to calculate Upsell Rate?

You can calculate Upsell Rate by dividing the number of customers who accepted an upsell by the total number of customers approached with an upsell offer, then multiplying by 100.

Steps to calculate Upsell Rate

  • Step 1 –
  • Define what counts as an upsell. It could be a higher-tier subscription, an add-on service, premium features, or volume upgrades.

  • Step 2 –
  • Identify upsell opportunities offered and track how many customers were pitched an upsell.

  • Step 3 –
  • Count successful upsells by recording how many customers actually purchased the upsell.

  • Step 4 –
  • Divide successful upsells by total upsell opportunities.

  • Step 5 –
  • Convert into percentage by multiplying by 100.

Formula to calculate Upsell Rate

Upsell Rate (%) = (lNumber of Customers Who Accepted an Upsell ÷ Number of Customers Offered an Upsel )×100

Benchmark for Upsell Rate

  • Upsell benchmarks vary significantly by industry and business model.
  • SaaS / Subscription businesses: 10–30% upsell rate is common.
  • E-commerce: 5–15% depending on cross-sell and personalization effectiveness.
  • Enterprise / B2B SaaS: Can exceed 30% due to account-based expansion strategies.

Related Metrics for Upsell Rate

  • Cross-Sell Rate
  • Net Revenue Retention (NRR)
  • Customer Lifetime Value (CLV)
  • Churn Rate

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FAQ's

Upsell means selling a higher-priced version or upgrade of the same product/service. While cross-sell refers to selling complementary or different products.

Only if the upgrade involves a monetary transaction beyond the original plan.

Personalize offers, time them strategically (renewals, usage milestones), train sales teams, and use in-product nudges.