ARPU Calculator
Calculate average revenue per user for any period and see what each active user is really worth.
ARPU
What it measures
ARPU divides total revenue in a period by the users active in it. It is the workhorse unit metric for anything with a large user base.
Why it matters
ARPU turns big abstract revenue into a per head number you can act on. Pricing changes, plan mix and upsells all show up in ARPU before they show up anywhere else.
A worked example
30,000 in monthly revenue over 1,500 active users is 20 ARPU. Move it to 22 and you have found 3,000 a month without a single new user.
How to read and improve it
Plan mix is the usual lever: move users from the plan they landed on to the plan that matches their usage.
Frequently asked questions
ARPU or ARPA?
ARPU counts users, ARPA counts accounts. B2B usually reads ARPA, consumer reads ARPU.
Monthly or annual ARPU?
Monthly is standard. Just label the period, because an unlabelled ARPU is meaningless.
More in SaaS metrics: SaaS CAC Calculator · Customer Lifetime Value Calculator · Churn Rate Calculator
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