Business Term
ARPU
Average Revenue Per User
ARPU
ARPU measures average revenue per user or customer.
Formula
ARPU = period revenue / average users
Use when
Use it when reviewing pricing, packaging, and LTV assumptions.
Watch out
Period revenue and target user or customer count
Updated: 06/27/2026Quality: ReviewedSources: 1
What it means
ARPU tracks average revenue affected by pricing, usage, plan mix, and upsell. It can hide segment differences if read only as an average.
How to calculate it
| Lens | Formula / treatment | When to use it |
|---|---|---|
| Basic formula | ARPU = period revenue / average users | Measures revenue per user |
What counts / what does not
| Item | Treatment | Why it matters |
|---|---|---|
| Include | Period revenue and target user or customer count | They define unit revenue |
| Exclude | Out-of-scope segments, undefined tax/refund treatment | They distort comparison |
What moves the number
| Driver | Metric impact |
|---|---|
| Price / plan mix | Moves with higher-value plan share |
| Usage / upsell | Rises with usage-based revenue and expansion |
When it helps
- Use it when reviewing pricing, packaging, and LTV assumptions.
How to use it
- Split by plan, region, and customer size rather than only using the overall average.
Decision cautions
- Fix whether the denominator is users or customers.
Example
Example: 10 million yen monthly revenue and 10,000 average users gives ARPU of 1,000 yen.
Compare with
| Metric | Difference | Why read together |
|---|---|---|
| LTV | Value across the relationship | ARPU is period average revenue |
Common mistakes
- A few large customers can raise the average, so check median and distribution.
Frequently asked questions
Is ARPU different from ARPA?
ARPU usually uses users; ARPA usually uses accounts.
Sources
| Sources | Kind | Link |
|---|---|---|
| YogoQ Core business foundation editorial baseline | editorial | — |