Average Revenue per User (ARPU)
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.
Related terms
Matching Flow-alerta service
AI opportunity analysis & roadmapAI consulting: AI potential analysis & roadmap on tasks, data and prerequisites of a possible first AI use case.Matching tool / use case
View use casesUse Case: Monthly evaluation of a digital subscription offer.Sources
- stripe.comStripe, ARPU – Definition und Berechnung
Quellenprüfung: 09.10.2026. Definition und dokumentierte Einordnung abgeglichen; Beispiele beschreiben mögliche Anwendungen.
Editorially reviewed on: