💰 Finance
👤
Average Revenue Per User
ARPU
The average monthly (or annual) revenue generated per active customer.
Definition
Average Revenue Per User (ARPU) is calculated by dividing total monthly revenue by the number of active paying customers. It tracks how much each customer contributes on average and is a direct input to MRR and LTV calculations. Expansion ARPU growth over time — existing customers paying more — is a strong indicator of a product that compounds value.
Example
If your MRR is $50,000 and you have 500 paying customers, your ARPU is $100/month.