FINBIZTOOLS
ARPU Calculator
Calculate average revenue per user (ARPU) from total revenue and the number of users or customers for the same period.
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Changes the currency symbol and number format only. Amounts are not converted.
How to use the ARPU Calculator
- Enter the total revenue for the period.
- Enter the number of users or customers for that same period.
- Select Calculate to see the average revenue per user.
Use the currency selector above the inputs to change the symbol. It changes the display only and does not convert amounts.
What is ARPU?
Average revenue per user (ARPU) divides total revenue by the number of users or customers over the same period, giving a simple per-customer revenue figure.
ARPU is a common input to other SaaS metrics, including LTV, which multiplies ARPU by gross margin and expected customer lifespan.
How the calculation works
ARPU formula
ARPU = Total revenue ÷ Number of users
- Total revenue is revenue for a chosen period (commonly one month).
- Number of users is the user or customer count for that same period.
Use a consistent period for both figures — for example, one month's revenue with that same month's active user count — for a meaningful ARPU.
ARPU calculation example
Total revenue of 500,000 across 1,000 users:
| Total revenue | 500000 |
|---|---|
| Users / customers | 1000 |
| Total revenue | 500000 |
|---|---|
| Users / customers | 1000 |
| Average revenue per user (ARPU) | 500 |
Amounts are shown without a currency symbol because the arithmetic is identical in any currency; the currency selector only changes the symbol and number format.
Assumptions and limitations
Assumptions
- Revenue and user count refer to the same period and the same population of users; mixing periods produces a misleading ARPU.
- This is a blended average across all users; it does not separate different plans, tiers or customer segments.
Limitations and why results can differ
- A single blended ARPU can hide large differences between customer segments (for example, free-tier users versus paying customers).
- It does not account for revenue recognized outside the chosen period, such as annual prepayments spread across future months.
Frequently asked questions
What period should I use for ARPU?
Any consistent period works, but monthly is most common for SaaS. Use the same period for both revenue and user count.
Should free users be included in the user count?
That depends on what you want ARPU to represent. Including free users lowers blended ARPU; excluding them gives ARPU per paying customer. Be consistent about which you use elsewhere.
How is ARPU used in other calculators?
The LTV Calculator uses ARPU together with gross margin and either churn rate or average customer lifespan to estimate customer lifetime value.
Can ARPU be used for non-subscription businesses?
Yes. It is simply total revenue divided by user count for a period, which applies to any business with a countable user or customer base.
Methodology
Total revenue (0 to 1,000,000,000,000) is divided by the number of users (0.01 to 1,000,000,000, so a division by exactly zero is rejected). ARPU is computed directly with no intermediate rounding before display rounding.
The calculation runs in your browser and inputs are not sent to a server.
Last reviewed:
Disclaimer
Results are calculated estimates based on the figures you enter. They are not accounting, pricing, tax or legal advice. Verify important business and pricing decisions with your own records and a qualified professional. Read the full Disclaimer.
Explore this topic
This tool is part of SaaS and Startup Metrics.
A common order: measure recurring revenue and churn, compare customer value with acquisition cost, then check runway.