Shipmunks

ARPU calculator

The short answer

This calculator divides recurring revenue for one period by the active users in that period. The headline uses the average of the users at the start and the users at the end. The lines under the result show those two counts, ARPPU, ARPA, and an annualized run rate. The fields open on labeled sample data, not a live business.

Try the sample month, then replace it

These fields start as the fictional SAMPLE month for Sample Meter. They are not your numbers until you change them. Recurring revenue is one period. The headline divides it by the average of the users at the start and the users at the end. Leave paying users or accounts blank to hide ARPPU or ARPA. The annualized line is 12 times the headline, and it matches annual ARPU only when the revenue is a one-month run rate.

ARPU $24

$1,200 / ((40 + 60) / 2) = $24

Start count is $30 ($1,200 / 40). End count is $20 ($1,200 / 60). ARPPU is $30 ($1,200 / 40 paying users). ARPA is $40 ($1,200 / 30 accounts). Annualized run rate is $288, which is 12 times the headline. It matches annual ARPU only when this revenue is a one-month run rate.

ARPU is $24. Start count is $30 ($1,200 / 40). End count is $20 ($1,200 / 60). ARPPU is $30 ($1,200 / 40 paying users). ARPA is $40 ($1,200 / 30 accounts). Annualized run rate is $288, which is 12 times the headline. It matches annual ARPU only when this revenue is a one-month run rate.

How to use it

The fields open on the sample month. Those inputs are example data for a fictional product. Replace them. Leave paying users blank to hide ARPPU. Leave accounts blank to hide ARPA. A blank is not a zero. A zero does not divide.

The headline is the average of the start and the end. The line under it is the start count, the end count, ARPPU, ARPA, and the annualized run rate. That run rate is 12 times the headline. It matches annual ARPU only when the revenue is a one-month run rate.

The same month is in the ARPU template (CSV). The guide is How to calculate ARPU, with a free calculator.

The formula

ARPU equals recurring revenue for the period divided by active users in that period. The headline user count is the average of the start and the end.

On the sample month, $1,200 / ((40 + 60) / 2) = $24. The start count is $1,200 / 40 = $30. The end count is $1,200 / 60 = $20. ARPPU is $1,200 / 40 = $30. ARPA is $1,200 / 30 = $40. The annualized run rate is 12 times $24, which is $288. Those inputs are sample data.

The recurring revenue on this form is the monthly price from how monthly recurring revenue is counted, with a yearly price divided by 12 first. Users who leave during the period are the subject of the churn rate guide. Months to earn back acquisition spend are the CAC payback calculator. The spend in that payback, split by channel, is customer acquisition cost by channel.

The other calculators are on the tools page.

FAQ

What is the ARPU formula?

Divide recurring revenue for a period by the active users in that period. The headline uses the average of the users at the start and the users at the end. On the sample fields, $1,200 divided by 50 is $24.

Why does the headline average the start and the end?

The same revenue can produce a different ARPU if you divide by the start count or the end count. On the sample, those readings are $30 and $20. The headline is the average, $24. Those figures are sample data.

What is the difference between ARPU, ARPPU, and ARPA?

ARPU divides by active users. ARPPU divides by paying users. ARPA divides by accounts. On the sample fields those are $24, $30, and $40. Clear paying users or accounts to hide that line.

Are the starting numbers real?

No. They are the SAMPLE month from the ARPU guide, a fictional product called Sample Meter. Recurring revenue on that sheet is $1,200. Replace the fields with your own.

How to calculate ARPU, with a free calculator The full guide: what the formula counts, what it leaves out, and the labeled sample this form starts from. Guide