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Average Revenue Per User Calculator

Enter total revenue and active users to find the average revenue per user.

How it is calculated

ARPU is a simple ratio: ARPU = total revenue ÷ active users. Total revenue is the money earned from users in one period (a month, a quarter, a year) in a single currency; active users is the number of users you count as active in that same period. The result is revenue per user for that period, shown to two decimals, together with the revenue and user count you typed in. Revenue may be zero, but the user count must be at least 1 (a fraction below 1 gives no result). The tool does not decide who counts as active, and it does not annualise: a monthly figure stays monthly.

Worked example

An app earned 48,500 in one month and had 12,400 active users in that month. ARPU = 48,500 ÷ 12,400 = 3.9113..., which the tool rounds to $3.91 per user for the month. If the same app earned 52,000 next month with 12,400 users, ARPU would rise to about 4.19, a quick way to see whether monetization improved.

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Common mistakes

  • Dividing by registered or downloaded users instead of active users. Counting dormant accounts pushes ARPU far below what active users really generate.
  • Mixing periods: a full year of revenue divided by last month's active users gives an inflated figure. Revenue and users must cover the same period.
  • Including refunds, taxes or one-off sales in revenue when the goal is recurring revenue per user; decide what "revenue" means and keep it consistent.
  • Reading ARPU as profit per user. It ignores acquisition, hosting and support costs entirely.
  • Comparing ARPU across products with different active-user definitions (daily vs monthly actives), which makes the numbers incomparable.

Sources

About this calculator

Average revenue per user (ARPU) divides total revenue for a period by the number of active users in that same period, giving a per-customer revenue figure that’s easy to compare across time, cohorts, or competitors regardless of how many total users a company has.

Telecom carriers popularized ARPU as a core reporting metric decades ago, and it’s now standard across SaaS, mobile apps, streaming and other subscription or usage-based businesses; investors watch ARPU trends alongside user growth to see whether a company is monetizing its user base more effectively over time or simply adding low-value users. This calculator divides your total revenue by active users to compute ARPU for any period.

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