ARPA calculator
ARPA is a unit-economics metric, calculated as MRR ÷ Active customers, per month. Per account, not per user (ARPU) — say which; mean, not median.
- Formula
- MRR ÷ Active customers, per month
Average revenue per account (ARPA)
ARPA = MRR ÷ Active customers$
ARPA, per month
$400
How it’s worked out
- 1MRR ÷ active customers$180,000 ÷ 450$400
Runs in your browser; nothing you type is sent anywhere. Amounts in US dollars.
How to read it
ARPA is recurring revenue per paying customer per month — the starting point for LTV and CAC payback.
Rising ARPA with flat customer count means expansion or price increases are working.
Common mistakes
- Including one-off setup fees in MRR.
- Dividing by all sign-ups rather than paying customers.
Questions
- ARPA or ARPU?
- ARPA is per account (a paying company); ARPU is per user (a seat). For B2B software they can differ by the average number of seats.
- Monthly or annual?
- Monthly, from MRR. Multiply by 12 for an annual figure.
Read it with
The metrics read alongside this one, and the terms it is confused with.
- MRR vs ARRMRR is recurring revenue normalized to one month; ARR is the same figure annualized — ARR is MRR × 12, so the two never disagree about the business, only about the unit.Compare
- Customer lifetime value calculatorLTV is a unit-economics metric, calculated as (ARPA × Gross margin) ÷ Revenue churn rate, both in the same period unit.Calculator
- Net new MRR calculatorNet new MRR is a recurring-revenue metric, calculated as New + Expansion − Contraction − Churned.Calculator
- CAC calculatorCAC is a unit-economics metric, calculated as Sales & marketing spend ÷ new customers.Calculator
- ARPAARPA is a unit-economics metric, calculated as MRR ÷ Active customers, per month.Term
The formula is the one the glossary states, and the arithmetic is unit-tested. A ratio with nothing to divide by shows a dash — undefined is not zero. General information, not financial advice.