Revenue Metrics

Average Revenue Per User (ARPU)

The average revenue generated per active user or account within a given time period.

ARPU divides total revenue by the number of active users or accounts, giving a single figure that tracks monetisation efficiency over time. Rising ARPU signals that the product is capturing more value per customer — through price increases, upsells, or usage growth. Falling ARPU may indicate a shift toward lower-tier plans, aggressive discounting, or a change in customer mix toward smaller accounts. ARPU is especially useful in consumer SaaS and freemium products where conversion rates and upgrade rates determine revenue. Some businesses distinguish between ARPU across all users (including free) and ARPU across paying users only. Either way, tracking ARPU alongside user count tells a more complete growth story than total revenue alone.