What is ARPU?
Average Revenue Per User – average revenue generated per customer or user.
Calculate ARPU for Your Campaign
Use our free ARPU calculator to get instant results
How ARPU Works
ARPU, or Average Revenue Per User, measures the average revenue generated per customer (or active user) over a specific period. It's calculated by dividing total revenue by the number of users or customers.
ARPU is especially important for subscription businesses, telecom, and consumer apps. Growing ARPU indicates successful upselling, improved monetization, or favorable customer mix shift toward higher-value segments. ARPU should be analyzed alongside user growth—increasing ARPU while losing users may indicate you're pricing out your market. The ideal scenario is growing both user base and ARPU simultaneously.
Frequently Asked Questions
What is ARPU?
Average Revenue Per User – average revenue generated per customer or user.
ARPU, or Average Revenue Per User, measures the average revenue generated per customer (or active user) over a specific period. It's calculated by dividing total revenue by the number of users or customers.
What does ARPU stand for?
Why is ARPU important?
ARPU reveals the monetary value of your average user, which is critical for understanding customer segmentation and monetization effectiveness. Rising ARPU while maintaining user growth signals healthy pricing power and successful upselling. However, ARPU must be analyzed in context—premium strategy increases ARPU but may limit market size, while volume strategy decreases ARPU but expands reach.
How do you calculate ARPU?
ARPU = Total Revenue ÷ Number of Users (or Customers). For example, if you generated $100,000 in monthly revenue with 2,000 active customers, your ARPU is $100,000 ÷ 2,000 = $50 per user per month.