ARPA Calculator (Average Revenue Per Account)
Calculate average revenue per account, track it against expansion and new customer mix, and see how ARPA movement affects total recurring revenue.
💵 SaaS Metrics📐 ARPA = total recurring revenue / number of accounts💼 Business
Total monthly recurring revenue
Number of active accounts
Prior period MRR (optional)
Prior period accounts
Please enter valid values.
Formula & Reference
| Variable | Symbol | Formula | Units |
|---|---|---|---|
| ARPA Calculator (Average Revenue Per Account) | — | ARPA = total recurring revenue / number of accounts | currency per account |
Step-by-Step Examples
Example 1
Rising ARPA
MRR 240,000 across 1,600 accounts; prior period 210,000 across 1,500.
- ARPA = 240,000 / 1,600 = 150.00
- Prior ARPA = 210,000 / 1,500 = 140.00
- Change = +7.14%
- MRR grew 14.3% on 6.7% account growth — the gap is ARPA expansion
✓ 150.00, up 7.14%
Example 2
Downmarket Drift
MRR 400,000 across 5,000 accounts; prior 350,000 across 3,800.
- ARPA = 80.00, prior ARPA = 92.11
- Change = −13.15%
- MRR grew 14.3% but on 31.6% account growth
- New accounts are substantially smaller than the existing base
✓ 80.00, down 13.15%
Example 3
Enterprise Mix
MRR 900,000 across 220 accounts.
- ARPA = 4,090.91 per month
- Annualised = 49,090.92 per account
- High ARPA with low account count is characteristic of enterprise models
✓ 4,090.91 per month
Real-World Applications
Growth Decomposition
Comparing MRR growth against account growth separates volume-driven growth from value-driven growth.
Segment Strategy
Falling ARPA alongside rising accounts often signals unintentional downmarket drift.
Pricing Signal
Sustained ARPA growth without price increases indicates customers are expanding usage voluntarily.
Forecasting
ARPA multiplied by projected account count gives a simple but effective MRR forecast.
Common Mistakes to Avoid
⚠️
Confusing ARPA with ARPU
ARPA is per account, ARPU per user. In B2B, one account often contains many users, so the two differ substantially and are not interchangeable.
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Including one-off revenue
ARPA should reflect recurring revenue only. Including services, setup fees, or overages inflates it and makes period comparison unreliable.
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Reading rising ARPA as unambiguously good
It can result from losing small customers rather than growing large ones. Check whether account count is also healthy before celebrating.
Frequently Asked Questions
What is ARPA? ▾
Average revenue per account — total recurring revenue divided by the number of active accounts, usually expressed monthly.
How is ARPA different from ARPU? ▾
ARPA is per account and ARPU per individual user. In B2B software with multi-seat accounts, ARPA is typically far higher than ARPU.
Why is ARPA important? ▾
Because MRR growth can come from more accounts or more revenue per account. ARPA separates the two, revealing whether value per customer is improving.
What causes ARPA to fall? ▾
Downmarket customer mix, discounting, contraction and downgrades, or a self-serve tier attracting many smaller accounts.
Should one-off revenue be included? ▾
No. ARPA is a recurring revenue metric. Including services or setup fees distorts it and breaks comparability between periods.