Metrics · Finance · Monetization · Monthly · $

Average Revenue Per User

Average revenue generated per active user over a period.

Formula

Total revenue / Total active users

How to measure

Divide total revenue for the period by the total count of active users, including free users if the product has a freemium base.

Why track it

ARPU trends reveal whether monetization is improving or if a growing free user base is diluting average revenue.

Example

A freemium app earning $40,000 across 20,000 active users reports $2 ARPU.

Average Revenue Per User — Growth metric · Cofounderbase