ARPU (Average Revenue Per User) is a metric that divides total revenue in a period by the number of users or accounts in that period, giving the average revenue each one produces.
Why it matters
ARPU shows whether growth comes from more users or from each user paying more. It helps compare pricing tiers, spot the effect of upgrades and feed estimates such as LTV. A flat ARPU with falling user numbers is a warning sign.
Example
A service earns 24,000 USD in a month from 800 paying users. ARPU is 24,000 divided by 800, or 30 USD. If a new plan lifts revenue to 27,200 USD with the same users, ARPU rises to 34 USD.
Common mistakes
- Including free users in one calculation and excluding them in another, then comparing the two.
- Reading the average as typical when a few large accounts pull it up.
- Confusing ARPU (per user) with ARPA (per account).
Related
Get notified when this term updates
Plus occasional practical tips on uptime and monitoring, nothing else. Unsubscribe anytime.
यह पेज सामान्य जानकारी है, जिसे हमारी संपादकीय टीम ने लिखा है और दस्तावेज़ीकरण बदलने पर अपडेट किया जाता है। सर्वर और प्रदाता अलग-अलग होते हैं, इसलिए बदलाव पहले सुरक्षित तरीके से जाँचें। देखें: संपादकीय नीति और अस्वीकरण.