ARPU

Average Revenue Per User: the average revenue generated per user (or customer) in a given period.

Core MetricsTerm 26 / 81

Formula

ARPU = Revenue in period ÷ Active users

In practice

An average hides the extremes: a few large customers can inflate ARPU. Look by segment, and state clearly whether free users are included.

Once the terms are clear, build the system.

Let’s pin down which metrics your company should watch and which lever to pull first.