ARPU - Average Revenue Per User

The Average Revenue Per User (ARPU) shows how much revenue is generated on average by one account in a set time period.

Ryan avatar
Written by Ryan
Updated over a week ago

This metric shows an average customer's worth to you in a set time period. In combination with the prediction of how long a customer will stay with your business, it enables you to calculate Customer Lifetime Value. It can be especially insightful if you track the ARPU for different customer acquisition channels. This gives you an understanding of how valuable different marketing channels are to you.

Alias

Average Revenue Per Account

Abbreviation

ARPU

Unit

Currency (Euro/Dollar/YEN/...)

Calculation

APRU is calculated by dividing the Monthly Recurring Revenue by the total number of paying users.

MRR

÷ Σ of paying users

_______________

ARPU

_______________

Example

A company has an MRR of 12,000€ and 220 paying customers.

12,000 €

÷ 220

________

54,55 €

________

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