ARPU Calculator
Average Revenue Per User (ARPU) is a fundamental metric for subscription businesses, mobile apps, and SaaS products. It measures the average revenue generated by each active user or account in a given period, typically monthly. ARPU is used to benchmark monetization efficiency, model customer lifetime value, and evaluate the impact of pricing changes. A rising ARPU indicates successful upselling, price increases, or a shift toward higher-value customers. This calculator computes both blended ARPU (including free users) and paid ARPU (excluding free users), giving you a complete picture of how different user segments contribute to revenue. Enter your total monthly revenue, number of paid users, and number of free users to see both figures instantly.
ARPU formula
Paid ARPU = Total Revenue / Paid Users
Blended ARPU = Total Revenue / (Paid Users + Free Users)
Conversion Rate = Paid Users / (Paid Users + Free Users) * 100
ARPU by business model
- Consumer mobile apps: ARPU of $1 to $5/month is common for freemium; $10 to $30 for paid apps.
- SMB SaaS: ARPU of $50 to $500/month is typical.
- Mid-market SaaS: ARPU of $500 to $5,000/month.
- Enterprise SaaS: ARPU above $5,000/month per account.
ARPU: frequently asked questions
What is ARPU?
Average Revenue Per User (ARPU) measures how much revenue each active user or account generates on average. It is calculated by dividing total recurring revenue by the number of active users in the same period.
How is ARPU used?
ARPU helps companies understand revenue density, compare pricing tiers, model LTV, and benchmark against competitors. Higher ARPU means each customer contributes more to covering fixed costs.
What is the difference between ARPU and ARPA?
ARPU is revenue per user. ARPA is revenue per account. For B2B SaaS with multiple seats per account, ARPA is more meaningful. For consumer apps, ARPU is standard.
How do I increase ARPU?
Strategies include raising prices, reducing free-tier features, improving upsell to premium plans, adding seat-based pricing, and expanding into higher-value market segments.
Should I include free users in ARPU?
It depends on your model. Including free users gives blended ARPU, which shows monetization efficiency. Excluding free users gives paid ARPU, which is more relevant for revenue modeling.
Sources
- U.S. Securities and Exchange Commission: EDGAR Company Filings.
- U.S. Small Business Administration: Manage Your Finances.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.