ARPU Calculator

ARPU formula

ARPU = Total Revenue​/Number of Users

Understanding the ARPU result

The ideal ARPU will depend on your targets, scale of business and industry. In general:

• A high ARPU indicates that each user/ customer is generating high revenue for your business. This could be because of high-value offerings or effective upselling and cross-selling.
• A low ARPU can indicate that your pricing is low or that you have a relatively high number of customers making low-value purchases. This may indicate that you must revise your pricing strategies and focus on your upselling and cross-selling strategies.

When to calculate ARPU

ARPU should be calculated regularly, particularly in the following scenarios:

• During monthly, quarterly, or annual financial reviews
• While evaluating the effectiveness of your pricing strategies
• While comparing performance across different customer segments
• While assessing the impact of marketing campaigns on customer value
• After implementing strategies for upselling or cross-selling

How to calculate ARPU with example

Imagine that your company generated $500,000 in revenue last month and had 10,000 active customers during that period. Your ARPU can be calculated as follows.

ARPU = Total Revenue​/Number of Users

ARPU= 500,000/10,000 = 50

In this example, your ARPU is $50. This indicates that each of your active customers generated an average of $50 in revenue for your business.

How to use the ARPU calculator

To calculate ARPU, enter the total revenue generated during a specific period and the total number of customers/ users that you had during that period. The tool will instantly calculate your ARPU.