Definition
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.
FAQ
- What is Average Revenue Per User?
- Average revenue generated per active user over a period.
- How do you calculate Average Revenue Per User?
- Total revenue / Total active users
- Why track Average Revenue Per User?
- ARPU trends reveal whether monetization is improving or if a growing free user base is diluting average revenue.