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Revenue metrics

ARPA (Average Revenue Per Account)

MRR divided by the number of active accounts. Also seen as ARPU, where the unit is a user rather than an account.

Average Revenue Per Account is MRR รท active accounts. ARPU is the same idea with users as the denominator, which matters when a single account contains many paying seats.

ARPA moves for two very different reasons, and the average hides which: you sold to larger customers, or your existing customers grew. Segmenting by plan or by size separates them.

It is an input to LTV and to CAC payback, so an ARPA that has been quietly dragged up by a handful of large accounts will distort both.