Vareto Finance Glossary

Upsell ARR


Upsell ARR is ARR that is signed to an existing customer that results in an increase in a customer’s ARR and is driven by the customer using a new product or service. This often involves a customer using a new type of product or service that the company offers, which results in an increase in their ARR.


ABC Co. has an ARR of $100,000. Vareto releases a new Workflow product and charges ABC Co. $20,000 per year. This results in an ARR of $120,000. Upsell ARR = $20,000

Why it matters

Upsell ARR is important to understand as it highlights a company’s ability to expand the use cases of its product and services among existing customers. It is common that a company has multiple product and service offerings. This can be used as a starting point for customer acquisition, after which they can upsell their customers through additional products/services and up their ARR.