ARPU (Average Revenue Per User)
The average monthly revenue generated per active user or customer.
Average Revenue Per User (ARPU) measures how much revenue each customer contributes on average. Calculate by dividing total monthly revenue by total active users. Higher ARPU means fewer customers needed to reach revenue targets, which typically means lower support costs and higher margins. On Enterpricr, ARPU helps buyers compare businesses: a $10K MRR business with 100 customers at $100 ARPU is often more valuable than one with 10,000 users at $1 ARPU because it's less dependent on volume.
Related Terms
LTV (Lifetime Value)
The total revenue a business expects to earn from a single customer over their lifetime.
MRR (Monthly Recurring Revenue)
The predictable revenue a business earns every month from active subscriptions.
CAC (Customer Acquisition Cost)
The average cost to acquire one new paying customer.