ARPA (Average Revenue Per Account)

ARPA shows average revenue per account. Learn how to calculate, segment, and increase ARPA.

ARPAaverage revenue per accountARPA formula

Definition

ARPA is average recurring revenue per paying account over a period.

Answer-first summary

ARPA (Average Revenue Per Account): ARPA is average recurring revenue per paying account over a period.

Formula

ARPA

ARPA = Total MRR / Number of Paying Accounts

  • Total MRR: Recurring revenue for the period (normalized monthly)
  • Paying Accounts: Active paying customers/accounts

MRR $120k and 300 accounts → ARPA = $400.

How to improve

  • Improve packaging and add-ons.
  • Drive seat expansion.
  • Target higher-value segments.

Common pitfalls

  • Mixing different segments (SMB+enterprise) hides signal.
  • Counting inactive accounts incorrectly.

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FAQ

ARPA vs ARPU?
Often used interchangeably; ARPA emphasizes accounts (B2B). ARPU can mean users (B2C) or accounts depending on context.
Should I track ARPA by cohort?
Yes—especially for expansion dynamics and pricing changes.

Topic hub

Explore the full cluster for stronger context, benchmarks, templates, and comparisons.

Retention & Expansion Hub — NRR, GRR, Churn, Expansion MRR

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    Calculate net revenue retention from starting MRR, expansion, contraction, and churn.

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