What is the difference?

# ARPA vs ARPU

Average Revenue Per Account

Average Revenue Per User

#### What is it?

Average Revenue Per Account (ARPA) is the average revenue generated per account per year or month. It is used as an indication of revenue generation capability and the ability to meet targets.

Average Revenue Per User (ARPU) is a company's generated revenue that is averaged across all users and reported as a monthly or yearly value. ARPU is a top-level metric, that can easily be normalized and is often cited as a comparative measure between similar companies.

#### Formula

ƒ Sum(Revenue) / Count(Accounts)
ƒ Sum(Revenue) / Count(Users)

#### Example

Consider a company has 1000 accounts and is generating \$100,000 in revenue per month. Average Revenue per Account would be, ARPA = \$100,000 / 1000 = \$100 per account per month

Consider a B2C SaaS company has 1000 individual customers and is generating \$200,000 in revenue per month, Average Revenue per User would be; ARPU = \$200,000 / 1,000 = \$200 per user (monthly)

#### Published and updated dates

Date created: Apr 28, 2018

Latest update: Aug 7, 2020

Date created: Apr 28, 2018

Latest update: Jun 11, 2021