Use this ARPU calculator to calculate your average revenue per user. Just enter your total revenue and number of users, and the calculator will do the rest. You can use this ARPU calculator to track your ARPU over time, identify trends, and make informed decisions about your business.

Example:

• Total revenue: $10,000 Number of users: 1,000
• ARPU: $10,000 / 1,000 users = $10 per user
• This means that the average user generates $10 in revenue for your business each month

What is ARPU, Anyway?

ARPU stands for Average Revenue Per User. It is a key performance indicator (KPI) used to measure the average revenue generated by each user of a product or service over a given period of time, usually a month or a year.

ARPU Formula:

Average Revenue Per User 🟰 Total Revenue ➗ Total Number of Customers

Examples:

• A freemium mobile game might have an ARPU of $0.50 per user per month, meaning that the average user spends $0.50 on in-app purchases each month.
• A subscription-based streaming service might have an ARPU of $10 per user per month, meaning that the average user pays $10 per month for a subscription.
• A SaaS company might have an ARPU of $100 per user per month, meaning that the average user pays $100 per month for access to the company’s software.

What is ARPUU?

ARPPU stands for Average Revenue Per Paying User. It is a variation of ARPU that calculates the average revenue generated by only the paying users of a product or service. ARPPU is often used by businesses that have a freemium business model, where only a small percentage of users actually pay for the product or service.

ARPUU Formula:

Average Revenue Per Paying User 🟰 Total Revenue ➗ Total Number of Paying Customers

Examples:

• A freemium mobile game might have an ARPPU of $5 per user per month, meaning that the average paying user spends $5 per month on in-app purchases.
• A subscription-based streaming service might have an ARPPU of $15 per user per month, meaning that the average paying user pays $15 per month for a subscription.
• A SaaS company might have an ARPPU of $200 per user per month, meaning that the average paying user pays $200 per month for access to the company’s software.

What’s the Difference Between ARPU and ARPPU?

• ARPU calculates the average revenue generated by all users, including both paying and non-paying users.
• ARPPU calculates the average revenue generated by only the paying users.

ARPU and ARPPU are important metrics for businesses because they can help them to:

• Track the performance of their monetization strategies
• Identify areas for improvement
• Make informed decisions about pricing and marketing

For example, if a business’s ARPU is low, it may need to consider changing its monetization strategy or increasing its prices. Conversely, if a business’s ARPU is high, it may be able to afford to invest more in marketing and user acquisition.

TL;DR: ARPU is a key metric that measures the average revenue generated by each user of a product or service over a given period of time. It is an important metric for businesses to track because it can help them to improve their monetization strategies and make informed decisions about pricing and marketing.