Average revenue per user. The ARPU Calculator takes revenue in the period, active users and returns average revenue per user plus annual revenue per user. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Startup metrics are about the efficiency of growth: how much it costs to win and keep customers, how fast recurring revenue compounds, and how long the cash lasts. Investors read these numbers before they read the pitch. Use the worked example below to check the maths against your own figures.
How the ARPU Calculator works
Average revenue per user shows the value of each user; rising ARPU means better monetisation, falling ARPU means growth is coming from lower-value users.
Worked example
With the example values (revenue in the period of $60,000, active users of 1500), the average revenue per user is $40.00; annual revenue per user $480.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is average revenue per user calculated?
ARPU = revenue ÷ active users.
Which figures do I need?
Revenue in the period, active users. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What do investors consider healthy?
Common benchmarks: LTV:CAC above 3, CAC payback under 12–18 months, net revenue retention above 100%, monthly churn under 2% for SMB and under 1% for enterprise, and at least 12–18 months of runway.
