Definition
Average recurring revenue generated per paying account, commonly used in B2B billing models.
Formula
Total MRR / Total paying accounts
How to measure
Divide total MRR by the number of distinct paying accounts, treating multi-seat accounts as a single account.
Why track it
ARPA reflects the true billing unit in B2B and is more actionable than per-user metrics when accounts, not individuals, make purchase decisions.
Example
A company with $150,000 MRR across 300 accounts reports $500 ARPA.
FAQ
- What is Average Revenue Per Account?
- Average recurring revenue generated per paying account, commonly used in B2B billing models.
- How do you calculate Average Revenue Per Account?
- Total MRR / Total paying accounts
- Why track Average Revenue Per Account?
- ARPA reflects the true billing unit in B2B and is more actionable than per-user metrics when accounts, not individuals, make purchase decisions.