Annual Recurring Revenue

Detailed Description

Average Revenue Per User (ARPU) is a very important SaaS metric that measures the average revenue per user within a given period. ARPU is a useful metric for businesses with subscription-based models, particularly in B2C markets. This metric is normalized and used for comparative analysis with competitors.

How To Calculate

ARPU is calculated by dividing the total revenue (within a given period) by the total number of active users. For example, $1,000,000 in revenue from 5,000 users within a given period, the ARPU for that period would be $200


ƒ Sum(Revenue) / Count(Users)


The Average Revenue Per User can vary depending on the app category and the pricing model in the industry. Subscription apps usually have higher ARPU than other revenue models.

Related Metrics

Average Revenue Per Account
Average Selling Price
Won Opportunities


To calculate average revenue per user, you must divide the total revenue by the number of users

There isn't a standard benchmark, and it can vary from one business to another.

It helps businesses evaluate their pricing strategy's effectiveness, monitor changes in customer behavior, and identify opportunities for revenue growth.