Definition
ARPU is revenue per active user; ARPA is revenue per paying account/customer. Choose the denominator that matches how you bill.
Example
If 200 accounts pay $1,000 total and 800 users are active, ARPA is $5 and ARPU is $1.25.
How to use it
- B2B SaaS often prefers ARPA (per account).
- Per-seat pricing can make ARPU more natural.
- Label the metric clearly so teams don't mix denominators.
- Use the same denominator across retention and LTV models.
- Track ARPA and ARPU together if you have mixed pricing models.
Common mistakes
- Switching between ARPA and ARPU in the same report.
- Using active users as a proxy for paying accounts.
- Mixing trial users into ARPU without labeling the definition.
Measured as
Measure ARPA vs ARPU on the same customer segment, time window, and revenue basis each time you review it.
Misused when
- Switching between ARPA and ARPU in the same report.
- Using active users as a proxy for paying accounts.
- Mixing trial users into ARPU without labeling the definition.
Operator takeaway
- B2B SaaS often prefers ARPA (per account).
- Per-seat pricing can make ARPU more natural.
- Label the metric clearly so teams don't mix denominators.
- Keep ARPA vs ARPU consistent by cohort, segment, and period before you use it as a decision signal in planning or reporting.
- Interpret the metric alongside retention, margin, or payback so one ratio does not hide the real operating trade-off.
Next decision
- Quantify the impact with ARPA Calculator if you need to turn the definition into an operating assumption.
- Read ARPA: how to calculate Average Revenue Per Account (formula + examples) if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
Where to use this on MetricKit
Calculators
- ARPA Calculator: Calculate Average Revenue Per Account (ARPA) for SaaS businesses and understand the ARPA formula.
- ARPU Calculator: Calculate Average Revenue Per User (ARPU) for a period and understand the ARPU formula.
- ARPU Growth Decomposition Calculator: Decompose revenue growth into ARPU change vs user growth (and interaction) between two periods.
Guides
- ARPA: how to calculate Average Revenue Per Account (formula + examples): ARPA (SaaS) explained: definition, ARPA formula, step-by-step calculation, and how to use ARPA with churn, payback, and LTV.
- How to calculate ARPU (Average Revenue Per User): ARPU calculation guide: definition, formula, worked example, and how to use ARPU with retention and LTV.
- ARPU growth decomposition: what drove revenue (ARPU vs users): A practical guide to decomposing revenue growth into ARPU change vs user growth (and interaction), with a worked example.