What is Average Revenue Per User (ARPU)?
Also known as: average revenue per account, ARPA
Average Revenue Per User (ARPU), sometimes called ARPA (per account), is the average recurring revenue generated by each customer over a given period.
What is ARPU?
ARPU shows how much value you extract per customer and how that changes as you move up- or down-market. Rising ARPU usually signals successful expansion, pricing power, or a shift to larger accounts.
How to calculate ARPU
Worked example
With $80,000 in MRR across 400 customers, ARPU = $80,000 ÷ 400 = $200 per month.
What's a good ARPU?
ARPU varies wildly by segment: self-serve SMB SaaS may sit at $20–$200/mo, while enterprise ARPA can be tens of thousands per month. Trend matters more than the absolute level.
Frequently asked questions
ARPU vs ARPA — what's the difference?
They're calculated the same way. 'User' (ARPU) is common in consumer or seat-based products; 'Account' (ARPA) is common in B2B where one account has many users.
Should ARPU use MRR or ARR?
Either, as long as you're consistent. Monthly ARPU uses MRR; annual ARPU uses ARR. State which you mean.