Glossary > Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU)
Average revenue per user (ARPU) is a measure of how much revenue is generated for each active customer. ARPU is typically calculated on a monthly basis and helps companies understand how much an average customer spends per subscription.
Average revenue per user (ARPU) is calculated by dividing the monthly recurring revenue (MRR) by the number of active users in a given month.
MRR / # of active customers = ARPU
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