What is Average Revenue Per User?
Average revenue generated per user or account.
How to calculate it
Calculate Average Revenue Per User as: Total revenue / Number of users (or accounts). Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
$20,000 MRR / 200 users = $100 ARPU.
Example 2
$30,000 MRR across 250 accounts -> $120 ARPU. After launching a premium tier, ARPU rises to $145 as a fifth of accounts upgrade.
Why it matters
Average revenue per user (ARPU) is the average revenue generated per user or account and tracks monetization and pricing effectiveness over time. Rising ARPU signals successful upsell, better packaging or a shift toward higher-value customers. Mixing user-level and account-level definitions makes the figure inconsistent and hard to trend.
Benchmark context
There is no universal target; watch the trend, expecting ARPU to rise as tier mix improves and upsell motions mature.
Common pitfalls
Mixing user-level and account-level ARPU.
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