Average Revenue Per User (ARPU)
The average monthly revenue generated per active user or account.
Why it matters
ARPU reveals pricing power and expansion revenue potential. Growing ARPU means customers are finding more value, which improves unit economics without needing more customers.
Formula
Divide your total recurring revenue for the month by the number of active paying users or accounts in that same month.
Calculator
What's a good ARPU?
Consumer SaaS: $5-$50/mo. SMB SaaS: $50-$500/mo. Mid-market: $500-$5,000/mo. Enterprise: $5,000+/mo.
Related metrics
MRR
SaaSThe predictable revenue a business expects to earn every month from active subscriptions.
CLV
SaaSThe total revenue a business can expect from a single customer account over the entire duration of their relationship.
ARR
SaaSThe annualized value of recurring subscription revenue, giving a full-year view of predictable income.