SaaS & retention
Average Revenue per User Calculator
Calculate period revenue per average active user with a stated population and consistent revenue window.
Use ARPU for revenue per user or account, not per order. For contribution LTV, use monthly revenue and the same paying-customer population as churn.
What the result means
ARPU summarizes revenue intensity for the selected population and period. Including free users lowers the denominator's revenue yield compared with a paying-only measure, so label the population before making comparisons.
The formula
Revenue for the period / average active users
Results are displayed to at most two decimal places. Calculations use the unrounded inputs.
A worked example
Put the formula to work
- Revenue for the period (currency)
- 30,000
- Average active users (users)
- 600
ARPU (input currency per user for the period): 50.00
Monthly net revenue of 30,000 from an average of 600 paying accounts gives monthly ARPU of 50 per account.
How to use this calculator
- Define the revenue period and whether users means people, accounts, or paying customers.
- Calculate the average active population over that same period.
- Divide the matched revenue by the average population.
- Label both the population and period whenever sharing the result.
Why this number matters
ARPU separates monetization intensity from customer-count growth and helps explain shifts in plan mix, pricing, and recurring revenue.
Input definitions
- Revenue for the period (currency)
- Net revenue generated by the included user population during the stated period.
- Average active users (users)
- Time-average active users or paying accounts under a documented definition; use fractional averages if needed. Must be greater than zero.
Assumptions and limitations
- Not directly comparable across monthly and annual periods or user and account definitions.
- Averages can hide concentration in a few high-revenue accounts.
- A snapshot denominator can bias the result when the user base changes rapidly.
Methodology
The default result and worked example use the same calculation functions as the interactive tool. The formula cannot verify the quality or scope of your source data.
Read our calculation methodology
Last updated .