Average Revenue Per User (ARPU) Calculator

What is ARPU?

Average Revenue Per User (ARPU) is a key business metric that measures the revenue generated per user/customer during a specific time period. It's widely used in SaaS, telecom, and subscription-based businesses to track monetization efficiency.

Key Formulas & Calculations

1. Basic ARPU Formula

The fundamental ARPU calculation divides total revenue by total active users.

$\text{ARPU}=\frac{\text{Total Revenue}}{\text{Number of Users}}$

2. Time-Adjusted ARPU

For per-day valuation when analyzing different time periods:

$\text{Daily ARPU}=\frac{\text{ARPU}}{\text{Number of Days in Period}}$

3. Benchmarking Formula

Compare your ARPU against industry standards (SaaS example shown):

$\text{Performance \%}=\left(\frac{\text{Your ARPU}-\text{Industry Low}}{\text{Industry High}-\text{Industry Low}}\right)\times 100$

Example Calculation

Scenario:

• Total Revenue: $75,000
• Number of Users: 3,000
• Period: Quarterly (90 days)
• Industry Benchmark: $5-$15 (SaaS)

1. Calculate ARPU

$\text{ARPU}=\frac{\$75,000}{3,000}=\$25$

2. Calculate Daily Value

$\text{Daily ARPU}=\frac{\$25}{90}=\$0.28$

3. Benchmark Comparison

$\text{Performance \%}=\left(\frac{\$25-\$5}{\$15-\$5}\right)\times 100=200\%$

Interpretation: Excellent (↑ $10 above industry high)

How to Use the ARPU Calculator

1. Input Total Revenue - Your gross revenue for the period
2. Enter User Count - Active users during the same period
3. Select Time Period - Monthly/Quarterly/Annual or custom days
4. Get Results - Instantly see:

• ARPU value
• Daily breakdown
• Industry comparison

Why ARPU Matters

• Monetization Health - Higher ARPU = better revenue generation per user
• Pricing Strategy - Test if price increases improve ARPU without churn
• Segment Analysis - Compare ARPU across user cohorts (e.g., free vs. premium)

Industry Benchmarks

Pro Tips

✅ Track Trends - Monitor ARPU monthly to spot growth/declines
✅ Segment Users - Calculate separate ARPU for different plans
✅ Combine with Churn Rate - High ARPU means little if users quickly leave