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.
Who is it for?
Categories
Formula
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 users and is generating $200,000 in revenue per month, Average Revenue per User would be; ARPU = $200,000 / 1,000 = $200 per user (monthly)
Track this metric
Published and updated dates
Date created: Oct 12, 2022
Latest update: Oct 12, 2022
Date created: Oct 12, 2022
Latest update: Mar 21, 2024