Digital Marketing & Analytics
Basic

Average Revenue Per User

Mean revenue generated per active user in a period.

Formula

ARPU=Total RevenueTotal UsersARPU = \frac{\text{Total Revenue}}{\text{Total Users}}

Variables

ARPUAverage revenue per user
\text{Total Revenue}Revenue in the period
\text{Total Users}Active users in the period

Example

$120 000 revenue, 3 000 users → ARPU = $40

Did You Know?

Telecom companies pioneered ARPU in the 1990s; it's now the standard metric across all subscription businesses.

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