Average Revenue Per User (ARPU)

ARPU reveals the typical economic value per paying account. It turns abstract revenue totals into unit‑level insight that informs pricing and packaging decisions.

ARPU measures average monthly revenue generated per paying customer or account.

Segment ARPU by plan, cohort, and channel. Watching ARPU trends alongside NRR shows whether value per account is growing through upsell and adoption.

Average Revenue Per User shows how much revenue the average paying customer generates each month. Compute ARPU by dividing MRR by the number of paying customers. Segment ARPU by plan, cohort, and channel to see pricing leverage and upsell effectiveness. Tracking ARPU over time helps you understand whether packaging changes, add‑ons, or seat growth are increasing the value of each account.

ARPU uses current period revenue and active customers.

Divide current period MRR by the number of paying customers. Compute per account when seat‑based pricing applies.

$20k MRR and 500 customers → $40 ARPU.

In practice, remove trials and credits before computing ARPU so the value reflects paying customers only.

Including trials, letting outliers skew means, and ignoring refunds will misstate ARPU.

SMB: $20–$200; mid‑market: $200–$800; enterprise: $800+ (varies).

Benchmarks depend on segment. Track ARPU trend and distribution by plan to find pricing leverage.

Pair ARPU with NRR and cohort views to understand whether per‑account value compounds.

ARPU connects to MRR (scale) and CLTV (lifetime value) to shape pricing strategy.