Average revenue per paying user (ARPPU)
Monetisation metric. Do they pay, and is it worth what they cost?
What is average revenue per paying user?
Average revenue per paying user (ARPPU) is revenue in a period divided by the users who paid in that period.
Payer: a user with at least one payment in the period.
How to calculate ARPPU
ARPPU = Revenue from paying users ÷ Paying users- Revenue from paying users
- purchase and subscription revenue in the period (ad revenue is usually left out)
- Paying users
- unique users with at least one payment in the period
Where definitions differ
| Variant | Formula | When to use it |
|---|---|---|
| Monthly ARPPU | Monthly purchase revenue ÷ Monthly payers | The usual form. |
| Cohort ARPPU | Cohort purchase revenue by day n ÷ Cohort payers by day n | Used in LTV models. |
ARPPU calculator
Example inputs: change them to your own numbers. The examples only make the calculator show a worked answer; they are not benchmarks or targets. Runs in your browser; nothing you type is sent anywhere.
- ARPPU
- $40
- ARPU
- $2
Why can ARPPU rise while revenue falls?
If light spenders stop paying, the remaining payers spend more on average, so ARPPU rises even though fewer people pay and total revenue drops. Always read ARPPU with the number of payers.
How ARPPU differs by vertical
| EdTech | Driven by course price and plan mix. |
|---|---|
| Fintech | Rarely used; revenue per funded account is the closer metric. |
| OTT and streaming | Close to the average subscription price after discounts. |
| Gaming | Driven by a small group of high spenders; check the distribution. |
Common mistakes
- Reading ARPPU alone as a sign of monetisation health.
- Including ad revenue, which non-payers generate.
Questions
How do you calculate ARPPU?
Divide revenue from purchases in a period by the number of users who paid in that period. $120k from 3k payers is an ARPPU of $40.
Is a higher ARPPU always better?
Not on its own. A price rise can lift ARPPU while fewer users pay; check total revenue and payer conversion too.
How does ARPPU relate to ARPU?
ARPU is ARPPU multiplied by the share of active users who pay. If 5% of users pay and ARPPU is $40, ARPU is $2.
Does the calculator send my numbers anywhere?
No. It runs entirely in your browser, and nothing you type is stored or sent anywhere.
Why do tools report different values for the same metric?
Because definitions differ: what counts as active, which attribution window applies, whether organic users are included and how days are cut by timezone. Align the definition before comparing numbers.
Which currency do the calculators use?
The calculators show US dollars, but every formula works in any currency: enter your own figures in the currency you report in and read the results in that currency.