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ARPU Calculator

Get average revenue per user from revenue and users

Result

$15.16

How it is calculated

ARPU is a plain division: ARPU = total revenue ÷ number of users. The revenue is the money earned in the period you are measuring (a month, quarter or year) and users is the count of users in that same period. The result is revenue per user for that period, shown with two decimals and a dollar sign, which is a display symbol only; if your revenue is in another currency, read the answer in that currency. The number of users must be above zero. The tool accepts any revenue, including zero or a negative number (for example after refunds), and does not warn you. It uses whatever user count you supply, so deciding who counts as a user (all registered, active in the period, or paying only) is up to you, and that choice changes the meaning of the number a lot.

Worked example

An app earned 48,500 in one month and had 3,200 users in that month. Divide: 48,500 ÷ 3,200 = 15.15625. The tool rounds to two decimals and shows $15.16. Each user, on average, brought in about 15.16 that month. If only 800 of the 3,200 users paid, the figure per paying user would be 48,500 ÷ 800 = 60.63, a different metric called ARPPU.

Try this example →

Common mistakes

  • Mixing periods, such as annual revenue divided by monthly active users. Revenue and users must cover the same time span.
  • Dividing by all registered accounts, including inactive ones, then comparing with a benchmark based on active users.
  • Confusing ARPU with ARPPU. ARPU divides by every user; ARPPU divides only by paying users and is much higher in free-to-play products.
  • Using net revenue for one period and gross revenue (before store fees or refunds) for another, so the trend looks like a change that did not happen.
  • Treating the average as typical. A few big spenders can lift ARPU while most users pay nothing.

Sources

About this calculator

Average revenue per user (ARPU) is one of the core SaaS and subscription-business metrics, calculated simply as ARPU = Total revenue / Number of users over a chosen period (usually monthly), giving a single figure that represents how much value the average user generates.

Investors and analysts covering subscription businesses — telecoms, streaming platforms, mobile apps, and SaaS companies alike — track ARPU trends over time alongside customer acquisition cost (CAC) and churn to judge whether a growing user base is actually growing revenue efficiently, since raw user counts can mask a business quietly monetizing worse per user even as it adds new signups.

Startup founders reporting metrics to investors, product managers comparing monetization across user segments or plans, and finance teams building revenue forecasts all rely on ARPU as the standard way to normalize revenue by user count for comparison across time periods or against competitors.

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Comments (1)

  • Editorial team

    ARPU is an average, so a handful of large accounts can lift it while the typical customer pays far less. Run it twice, once for everyone and once for a segment such as one plan, and compare. The count you divide by matters too: the average number of customers during the period gives a different figure than the number at the end. Which customer definition do you use?

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