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Startup Metric

ARPU: Average Revenue Per User

How to calculate ARPU and use it to understand pricing, customer mix, and revenue growth.

Core formula

ARPU = revenue ÷ average users

SECTION 01

Definition

The useful way to interpret definition is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 02

Formula

The useful way to interpret formula is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 03

Example

The useful way to interpret example is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 04

Customer mix

The useful way to interpret customer mix is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 05

Pricing

The useful way to interpret pricing is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 06

Limitations

The useful way to interpret limitations is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 07

Use cases

The useful way to interpret use cases is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

SECTION 08

Related metrics

The useful way to interpret related metrics is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.

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