Average Revenue Per Account (ARPA) is an important SaaS metric. It is used for measuring the amount of revenue a company generates from a user within a given period. Subscription-based businesses use this metric to study their revenue generation capability.
ARPA is calculated by dividing the total revenue (for the given period) by the total number of users. For example, if a business generates $200,000 in revenue from 4,000 customers, the ARPA is $50
ƒ Sum(Revenue) / Count(Accounts)
The Average Revenue Per Account benchmark varies depending on the business model, the industry, and the customer acquisition costs. Most businesses aim at increasing their ARPA from the previous month, quarter, or year.
Average Revenue Per User
Average Selling Price
ARPA is calculated by dividing the total revenue by the total number of users for the given period.
ARPA measures the average revenue generated per customer account, while ARPU measures the average revenue generated per user or customer.
There is no benchmark for good ARPU, which varies depending on the business model and competition.