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ARPU Calculator

Calculate Average Revenue Per User across your customer base.

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Formula

ARPU = Monthly Revenue ÷ Total Active Users

What is ARPU?

Average Revenue Per User (ARPU) quantifies the average amount of monthly revenue generated across each active user or account on your platform.

How to calculate ARPU

Calculate your total active recurring revenue for the month and divide it by your total number of active, paying users.

Example calculation

If your startup is generating $25,000 a month consistently, and you have exactly 500 active subscriptions, your calculation is: $25,000 ÷ 500 = $50 ARPU.

Why ARPU matters for SaaS

ARPU reveals the willingness of your customers to pay. Increasing your ARPU via pricing optimization, add-on features, and enterprise-tier upsells is often the fastest path to expanding MRR without relying entirely on new customer acquisition.

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