Average Revenue Per Account (ARPA)

What is Average Revenue Per Account (ARPA)?

Average Revenue Per User (ARPU), it is the average of the revenue generated by every account, on a monthly or yearly basis.

Why is ARPA important?

  • ARPA allows companies to identify the revenue generation and per-unit growth of a product.

  • It also helps in predicting overall growth of the product, thus informing future strategies.
  • How to calculate ARPA?

    ($) Total monthly/yearly recurring revenue / (#) total accounts = ($) Average Revenue Per Account (ARPA).

  • You can modify this formula to get other scores, such as the Average Revenue per New Account and the Average Revenue per Existing Account.