ARPA (or ARPU) is "Average Revenue Per Account" (or Average Revenue per User) and usually given as a monthly value. So a SaaS with an ARPA of $40 gets - on average - $40 per month from every paid account.
ARPA is an important metric, as it is closely related to Lifetime value (LTV) via the following formula: LTV = ARPA * 100 / Churn rate
For simplicity ARPA is often given as a gross value. While this is easier to calculate, it is also less accurate, so if you know your Monthly Recurring Revenue (MRR), number of customers, and your gross margin, this nifty little calculator helps you figure out your net ARPU.
Sign up for my mailing list to receive the "SaaS Email Marketing Crash Course". In it you'll learn 5 ways that helped me and my clients make millions of dollars through email.
You'll get about one email per week with educational and/or promotional content. Unsubscribe at any time. We'll keep personal data according to our Privacy Policy
No spam. Easy unsubscribe.