Revenue & Sales
Basic

Average Revenue Per User

Average revenue per user divides total revenue over a period by the number of users.

Formula

ARPU=TRNARPU = \dfrac{TR}{N}

Variables

ARPUAverage revenue per user
TRTotal revenue
NNumber of users

Example

$50,000 across 2,000 users: ARPU = $25

Did You Know?

Rising ARPU shows a business is monetising each customer better — growth without adding headcount to sales.

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Total Revenue

Basic

Total revenue is the selling price multiplied by the number of units sold.

Net Revenue

Basic

Net revenue is gross revenue less returns, refunds and discounts — the amount actually recognised.

Average Revenue

Basic

Average revenue is total revenue divided by units sold — equal to price per unit in a single-price market.

Marginal Revenue

Intermediate

Marginal revenue is the extra revenue earned from selling one additional unit.

Revenue Growth Rate

Basic

The percentage change in revenue from one period to the next.

Monthly Recurring Revenue

Intermediate

Monthly recurring revenue is the number of active subscribers times average revenue per user per month.