ARPU: what an average customer pays each month

ARPU means average revenue per user: MRR divided by paying customers. It shows whether growth comes from more customers or from each one paying more.

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The formula

ARPU = MRR ÷ paying customers

An example

€609 MRR from 52 paying customers is an ARPU of €11.71.

How Sumly counts it

  • Shown under MRR on the overview.
  • A customer with two subscriptions counts once.

Mistakes that make it lie

  • Dividing by every signed-up user, free ones included, which mixes two different numbers.

Questions

Why does ARPU fall when I grow?

A cheaper plan or a launch that brings many small customers lowers the average even while MRR rises.

Read next

MRR: what a month of subscriptions is worthCustomer lifetime value: what one customer is worth

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