ARPU Calculator

About this calculator

Average revenue per user (ARPU) is one of the core SaaS and subscription-business metrics, calculated simply as ARPU = Total revenue / Number of users over a chosen period (usually monthly), giving a single figure that represents how much value the average user generates.

Investors and analysts covering subscription businesses — telecoms, streaming platforms, mobile apps, and SaaS companies alike — track ARPU trends over time alongside customer acquisition cost (CAC) and churn to judge whether a growing user base is actually growing revenue efficiently, since raw user counts can mask a business quietly monetizing worse per user even as it adds new signups.

Startup founders reporting metrics to investors, product managers comparing monetization across user segments or plans, and finance teams building revenue forecasts all rely on ARPU as the standard way to normalize revenue by user count for comparison across time periods or against competitors.