Average Revenue Per User (ARPU)

Wave
July 6, 2018

The ARPU is average revenue per user and refers to the revenue that a monetized user helps you generate over a period of time – usually a month or a year.

The Importance of ARPU

The importance of this measurement is that it reflects your brand’s ability to generate revenue, which impacts the health of your organization and the future of your brand.

How to Calculate ARPU

In order to properly calculate the Average Revenue Per User (ARPU), you divide the total revenue within a standard time period by the total number of monetized users.

Related Terms to ARPU

  • A related term is the ARPPU or Average Revenue Per Paying User, which is calculated by dividing up the revenue among all the users who paid. The resulting number will be much larger than the ARPU.
  • Another related term is the ARPDAU or Average Revenue Per Daily Active User, which refers to revenue generated by a customer who actively engages with your mobile app on a daily basis.

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