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ARPU Calculator

Calculate Average Revenue Per User (ARPU) for a period and understand the ARPU formula.

This ARPU calculator computes Average Revenue Per User by dividing revenue by average active users for a period. It is commonly used to track monetization changes from pricing, packaging, and user mix.

To calculate ARPU correctly, make sure your revenue and user count are measured over the same period and that you define what an "active user" means for your product.

Use ARPU to compare monetization across segments (plan, geo, channel), not just a blended average.

Prefer an explanation- Read the guide.

Need definitions- Browse the glossary.

How to calculate ARPU (Average Revenue Per User)ARPU growth decomposition: what drove revenue (ARPU vs users)ARPA: how to calculate Average Revenue Per Account (formula + examples)Bookings vs ARR: definitions, formulas, and examples

Total revenue (period)

Period length (months)

1 for monthly, 12 for annual.

Average active users (period)

Gross margin (optional)

Used to estimate gross profit per user.

Target ARPU (optional)

Use the same period as revenue.

Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:

$25.00

Total revenue (period): $50,000
Period length (months): 1
Average active users (period): 2,000
Gross margin (optional): 80%
Target ARPU (optional): $0

How to calculate

Pick a time window (month/quarter) and define "active user".
Sum revenue for that same window (be consistent: gross vs net of refunds).
Compute average active users for the window (e.g., average DAU, or (start + end) / 2).
Divide revenue by average active users to get ARPU.
Optional: annualize ARPU to compare across different window lengths.
Optional: add a target ARPU to see required revenue.

Formula

ARPU = Revenue / Average Active Users

Revenue, users, and period length use the same time window.
Annualized ARPU scales linearly by period length.

FAQ

ARPU vs ARPA-

ARPU is per user; ARPA is per account. Choose the one that matches your product and reporting.

How do you calculate ARPU-

ARPU = total revenue / average active users for the same period. Choose a time window (month/quarter), define 'active user', compute average active users, then divide revenue by that average.

Common mistakes

Using total signups as the denominator instead of active users.
Mixing active users and accounts (ARPU vs ARPA mismatch).
Comparing ARPU across periods without segmenting by plan or geo when pricing changes.
Changing revenue recognition (gross vs net) without updating historical comparisons.

How to interpret

Use ARPU effectively

Compare ARPU by segment (geo, plan, acquisition channel).
Pair with retention to understand long-term value.
Avoid mixing trials/free users unless you define it clearly.

Common mistakes

Using total signups as the denominator instead of active users.
Mixing gross revenue with net revenue (refunds/discounts) without noting it.
Comparing ARPU across periods while changing pricing or activation criteria without segmentation.