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    Average Revenue per User (ARPU)

    Application & enablementAverage Revenue per UserARPUAverage turnover per user
    Editorially reviewed on: 1 source
    Your reading view

    The short answer · 10 words

    In short

    Sales ratio per user for a fixed period of time.

    Flow-alerta.cab (2026): Average Revenue per User (ARPU). https://flow-alerta.cab/en/glossar/average-revenue-per-user-arpu. Editorially reviewed on: 09 October 2026.

    How much detail would you like?

    Practical

    Helps to look at sales development and user development together.

    Example scenario: 5,000 euros monthly sales for 100 defined active users result in a monthly ARPU of 50 euros.

    Document definition, period and volume of sales; supplement the key figure with costs and other variables.

    At a glance

    Core
    ARPU is calculated from the relevant revenue and the number of associated users in the same period. Which users will be included must be determined. In the subscription business, recurring proceeds and the associated subscribers are a possible reference basis; the specific definition shall be provided.
    Use
    Helps to look at sales development and user development together.
    Example
    Example scenario: 5,000 euros monthly sales for 100 defined active users result in a monthly ARPU of 50 euros.
    Limits
    Compare different time periods or user definitions; confuse sales with profit; consider averages without distribution.

    In context

    Questions about this term

    Is ARPU profit per user?

    No.

    Are only paying users counting?

    This depends on the defined ratio; the reference group must be unique.

    All details and background

    ARPU is calculated from the relevant revenue and the number of associated users in the same period. Which users will be included must be determined. In the subscription business, recurring proceeds and the associated subscribers are a possible reference basis; the specific definition shall be provided.

    ELI5 – Explained simply

    You divide the turnover of a period by the appropriate number of users.

    Why it matters in practice

    Helps to look at sales development and user development together.

    Example

    Example scenario: 5,000 euros monthly sales for 100 defined active users result in a monthly ARPU of 50 euros.

    Pitfalls and limits

    • Compare different time periods or user definitions; confuse sales with profit; consider averages without distribution.

    Origin & history

    ARPU is a business indicator. Stripe documents their general calculation and a concrete variant for subscriptions.

    Use in mid-sized companies

    • Document definition, period and volume of sales; supplement the key figure with costs and other variables.

    Sources

    • stripe.comStripe, ARPU – Definition und Berechnung

    Quellenprüfung: 09.10.2026. Definition und dokumentierte Einordnung abgeglichen; Beispiele beschreiben mögliche Anwendungen.

    Editorially reviewed on:

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