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ARPU Calculator
Enter total revenue for a period and your user count, either as one number or as users at the start and end of the period. Add paying users to get ARPPU, and see ARPU converted to monthly, quarterly and yearly figures.
Last updated:
$
User count
For ARPPU; leave empty if every user pays
$
Enter your values to see the result.
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How to use the ARPU Calculator
- Enter total revenue for the period, and pick whether it is a month, quarter or year.
- Enter users: one average figure, or the counts at the start and end of the period.
- Add paying users to get ARPPU and the share of users who pay.
- Optionally enter last period's ARPU to see the change.
- Press Calculate to see ARPU in every period length.
ARPU formulas
- ARPU = revenue in the period ÷ average users in the period
- Average users = (users at start + users at end) ÷ 2, or a daily/monthly average
- ARPPU = revenue ÷ paying users
- ARPU = ARPPU × share of users who pay
- Annual ARPU = monthly ARPU × 12 = quarterly ARPU × 4
Example: a freemium app earns $45,000 in a month. It starts with 8,500 users and ends with 9,500, so the average is 9,000 and ARPU is $5.00 per user per month ($60 a year). Of those, 1,500 pay, so ARPPU is $30.00 and 16.67% of users pay. Last month ARPU was $4.60, so it grew 8.7%.
ARPU, ARPPU and ARPA compared
| Metric | Divides revenue by | Common in | Tells you |
|---|---|---|---|
| ARPU | All users (free + paid) | Apps, telecom, media, games | What an average user is worth |
| ARPPU | Paying users only | Freemium apps and games | How much payers spend |
| ARPA / ARPC | Accounts or customers | B2B SaaS, agencies | Revenue per customer company |
Ways to raise ARPU
- Convert more free users to paid plans; ARPU rises even if prices stay the same.
- Add higher tiers or add-ons for customers who need more.
- Encourage annual plans carefully: they often carry a discount, which lowers monthly ARPU but usually reduces churn.
- Review pricing regularly against the value delivered and competitors.
- Segment ARPU by plan, country and acquisition channel; a single average can hide very different groups.
Frequently asked questions
How do you calculate ARPU?
ARPU = total revenue in a period ÷ average number of users in that period. If you earned $45,000 in a month with 9,000 average users, ARPU is $5.00 per user per month.
What is the difference between ARPU and ARPPU?
ARPU divides revenue by all users, including free ones. ARPPU (average revenue per paying user) divides only by users who paid. In freemium products ARPPU is often many times higher than ARPU because most users do not pay.
What is ARPA?
ARPA is average revenue per account. B2B software companies use it when one customer account has several users. The formula is the same: revenue ÷ average accounts. Choose 'account' in the calculator to label results that way.
How do I convert monthly ARPU to annual ARPU?
Multiply monthly ARPU by 12 (or quarterly ARPU by 4). This assumes revenue per user stays similar across the year, so seasonal businesses should calculate annual ARPU from a full year of data instead.
Why use average users instead of end-of-period users?
Users join and leave during a period. Averaging the start and end counts (or using a daily or monthly average) matches revenue to the users who were actually there when it was earned, and avoids inflating ARPU when you are growing fast.
How is ARPU related to customer lifetime value?
A simple lifetime value estimate is ARPU × gross margin ÷ churn rate (using the same period for ARPU and churn). Raising ARPU through upgrades, add-ons or pricing increases lifetime value directly.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.
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