ARPU
Average Revenue Per User
In one sentenceHow much revenue you earn, on average, from each customer or user in a period.
What it means
ARPU is a core metric for subscription and app businesses. Raising ARPU (through upgrades, add-ons, price increases) grows revenue without more customers. ARPA (per account) is the B2B version when one account has many users.
How to use it
- Track ARPU by plan or segment to see where upgrades happen.
- Pair it with Churn: raising prices lifts ARPU, but watch whether more customers leave.
FormulaARPU = total revenue in a period รท average number of users (or customers) in that period
Related terms
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