Average revenue per user (ARPU)
Average revenue per user (ARPU) is total revenue in a period divided by the number of users in that period. It is a standard unit-economics metric for subscription and consumer products, summarizing how much revenue each user generates. ARPU depends heavily on which users are in the denominator (all users vs active vs paying) and the length of the period, and it differs from ARPPU and lifetime value.
What this means
ARPU = total revenue in a period ÷ users in that period. It is usually quoted per month or per year. As a per-user average it blends high-spending and zero-spending users together, so it summarizes monetization across the whole base rather than describing any one user.
Denominator and period sensitivity
ARPU is only interpretable with its definition. The denominator can be all registered users, active users, or paying users — each produces a very different ARPU, and ARPU over only paying users is ARPPU, a separate metric. The period also matters: monthly ARPU and annual ARPU are not interchangeable. ARPU is a periodic average, distinct from customer lifetime value (LTV), which projects total revenue over a customer's entire relationship.
- ARPU = revenue ÷ users over a fixed period
- Denominator (all/active/paying) changes the number
- Distinct from ARPPU (paying users) and LTV (lifetime)
How it appears in analytics and logs
An ARPU figure tells you average revenue per user over the period. It rises or falls with pricing, mix, and the user base chosen — so a change can come from the denominator definition, not from monetization.
Diagnostic use case
Use ARPU to track per-user monetization over a fixed period, being explicit about whether the denominator is all users, active users, or paying users.
What WebmasterID can help detect
WebmasterID can record purchase/value events first-party, so the revenue numerator behind ARPU comes from your own measured outcomes rather than third-party attribution.
Common mistakes
- Comparing ARPU figures with different user denominators.
- Mixing monthly and annual ARPU.
- Confusing ARPU with ARPPU or lifetime value.
Privacy and accuracy notes
ARPU is an aggregate revenue-to-users ratio; it needs no personal identifiers. Revenue should be aggregated rather than tied to identifiable individuals.
Related pages
- Average revenue per paying user (ARPPU)
Average revenue per paying user (ARPPU) is total revenue divided by the number of paying users — it excludes everyone who did not spend. By isolating the paying base, ARPPU separates how much paying customers spend from how many people convert to paying. It is always at least as large as ARPU, and reading the two together reveals whether revenue is driven by spend depth or by the share who pay.
- Conversions per user
Conversions per user is the total number of conversions (key events) divided by the number of users. It measures how many converting actions an average user took, which differs from conversion rate (conversions per session or per user as a percentage). Its value depends on which events are marked as conversions and on the same identifier limits as any user count, so the definition must be fixed to read it.
- Monthly recurring revenue (MRR)
Monthly recurring revenue (MRR) is the normalized, predictable subscription revenue a business expects each month. Annual and multi-month plans are divided down to a monthly figure so the run rate is comparable. MRR is decomposed into new, expansion, contraction, and churned components, and it deliberately excludes one-off and usage-based charges — so it is a run-rate concept, not booked or recognized revenue.
- Website observability
Ground revenue metrics in first-party events.
Sources and verification notes
- Google Analytics Help — [GA4] ARPU (average revenue per user)
- Google Play Console Help — Average revenue per user metrics
Last reviewed 2026-06-24. Facts are checked against primary/official sources where available; uncertain specifics are marked “Data not yet verified” rather than guessed.