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ARPU

What is ARPU?

ARPU stands for Average Revenue Per User which measures how much money a company makes per customer account on average in any given time period;

This metric also includes those accounts with zero revenue during this timeframe

Example

If you have 3 products that cost $49, $99 & $199 per month and there are a total of 30 customers with 10 customers on each plan.

ARPU is calculated as Total revenue (49*10 + 99*10 + 199*10) = 3470 divided by (Total number of customers) 30

ARPU is 3470/30 = $115.6

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