# ARPU & ARPPU SaaS Revenue Calculator Compute Average Revenue Per User (ARPU) and Average Revenue Per Paying User (ARPPU) factoring in free trials and add-on subscriptions. --- - **Canonical URL:** https://dothecalculation.com/calculators/arpu-arppu-saas-calculator - **Category:** Creative & Digital Marketing - **Publisher:** Do The Calculation (https://dothecalculation.com) - **Cost:** Free, no account or sign-up required - **Privacy:** Runs entirely in the browser; inputs are never sent to a server - **Methodology:** https://dothecalculation.com/methodology - **Reviewed by:** Sheharyar Shahid, Data Analyst & Advanced Excel Specialist (DAE) (https://dothecalculation.com/about/team/sheharyar-shahid) --- ## Calculate revenue per user and per paying customer Calculate ARPU and ARPPU to understand your monetization efficiency across your full user base and within your paying customer segment. - ARPU vs. ARPPU comparison - Paying customer conversion rate - Revenue bar chart comparison ## ARPU vs. ARPPU: why both matter Average Revenue Per User (ARPU) = Total Revenue ÷ Total Active Users. Average Revenue Per Paying User (ARPPU) = Total Revenue ÷ Paying Customers. Customer Conversion Rate = (Paying Customers ÷ Active Users) × 100. If your app generates $50,000 from 10,000 active users with 1,000 paying customers: ARPU = $5, ARPPU = $50, Conversion Rate = 10%. ARPU represents the monetization efficiency of your entire user base. ARPPU shows the average revenue contribution of each monetized user. A low ARPU with a high ARPPU and low conversion rate (e.g., ARPU $0.50, ARPPU $50, conversion 1%) tells you: you have pricing power among buyers, but you're failing to convert most users to paying status. Compare to [customer lifetime value metrics](/calculators/customer-lifetime-value-calculator) for long-term perspective. ## ARPU benchmarks by industry Mobile gaming (casual): ARPU $0.10–$2/month. Mobile gaming (mid-core/hardcore): ARPU $3–$20/month. Dating apps: ARPU $6–$20/month. Streaming (Netflix, Spotify): ARPU $8–$15/month. Consumer SaaS: ARPU $15–$50/month. B2B SaaS: ARPU $100–$10,000+/month depending on plan structure. ARPPU in free-to-play games can range from $20–$100+/month for premium payers ("dolphins" and "whales"). For subscription apps, ARPPU equals the average subscription tier price minus refunds and failed payments. The free-to-paid conversion rate varies: 2–5% for mobile games, 15–25% for freemium SaaS trials, 3–7% for content apps. B2B product-led growth (PLG) companies target 15–25% free-to-paid conversion within the first 30 days. ## Improving ARPU and ARPPU Improving ARPU: increase the free-to-paid conversion rate through better onboarding, paywall placement, and value delivery before the paywall. Price optimization experiments (raising prices on existing plans) can also raise ARPU if demand is inelastic. Improving ARPPU: introduce higher-tier subscription plans, bundle add-ons, create consumable in-app purchase offerings, or implement per-seat pricing that scales with customer team size. Annual plan promotion lifts ARPPU by offering upfront revenue. Combine ARPU analysis with [customer lifetime value calculations](/calculators/customer-lifetime-value-detailed-calculator) to determine the maximum sustainable [CAC](/calculators/customer-acquisition-cost-calculator). If ARPU is $5/month and average customer lifetime is 24 months, LTV = $120 — your CAC ceiling is typically $40–$60 (3:1 LTV/CAC ratio). ## How to Use This Calculator Enter your total active users, paying users, and revenue split across monthly subscription revenue and add-on/setup fee revenue for the same reporting period. The calculator sums both revenue lines, then divides by active users for ARPU and by paying users for ARPPU, and multiplies the monthly total by 12 for an annual run-rate (ARR). Track both figures side by side each billing cycle: ARPU tells you how efficiently you monetize your entire user base (including free-tier accounts), while ARPPU isolates what paying customers are actually worth — a widening gap between the two usually signals a conversion problem, not a pricing problem. ## Related Calculators Compare monetization efficiency across your funnel with the [customer lifetime value calculator](/calculators/customer-lifetime-value-calculator) and the [CLV-to-CAC ratio calculator](/calculators/clv-to-cac-ratio-calculator). For account-level (rather than user-level) SaaS metrics, use the [average revenue per account calculator](/calculators/average-revenue-per-account-calculator). To see how this revenue is trending month over month, including CMGR and an ARR run-rate projection, use the [MRR/ARR Growth Rate Calculator](/calculators/mrr-arr-growth-rate-calculator). ## Frequently asked questions ### What is the difference between ARPU and ARPA? ARPU (Average Revenue Per User) uses individual users as the denominator. ARPA (Average Revenue Per Account) uses accounts or companies, common in B2B SaaS where one paying account may have multiple users. See [ARPA calculator](/calculators/average-revenue-per-account-calculator). ### Should I include trial users in ARPU? For most analyses, include only revenue-generating periods. Free trial users on a non-converted trial contribute $0 to revenue. Calculate ARPU from active period start (first payment) and calculate ARPPU from paying customers only. ### How does pricing model affect ARPU? Per-seat pricing scales ARPU with team size. Usage-based pricing scales ARPU with consumption. Fixed subscription tiers create predictable but potentially stagnant ARPU. Freemium models typically have low ARPU but high user volume. ### How do I use ARPPU to set acquisition budgets? ARPPU × Average Subscription Length = rough LTV per paying user. If ARPPU is $50/month and average tenure is 18 months, paying-user LTV = $900. You can then justify CAC up to ~$300 (3:1 LTV/CAC ratio) for acquiring paying customers. ### What causes ARPPU to decline over time? Pricing changes (discounts, grandfathered lower plans), feature downgrade patterns, plan downsells, and increased refund/churn rates all reduce ARPPU. Monitor for plan mix shifts as a leading indicator. ### Does offering a free plan hurt ARPU? Offering a free plan lowers ARPU by increasing the user denominator (more non-paying users). However, it can raise total revenue if the conversion funnel is effective. Freemium works when free plan users eventually convert at high ARPPU. ### How do promotions and discounts affect ARPU? Short-term promotions spike conversion rates but reduce ARPPU as discounted customers enter the paying cohort. Model the long-term ARPPU recovery timeline before running price promotions aggressively. ### What is net revenue expansion and how does it relate to ARPPU? Net revenue expansion (NRR/NDR > 100%) occurs when upsells and expansions outpace churn and downsells. Rising ARPPU over a customer's lifetime is a sign of successful expansion revenue motion. ### Should ARPU be calculated monthly or annually? Use monthly ARPU for operational tracking and MRR context. Annual ARPU (ARPU × 12) gives an ARR-aligned perspective. For subscription businesses, monthly is more actionable since it aligns with billing cycles and churn metrics. ### How does ARPU differ for B2C vs. B2B? B2C ARPU is typically much lower ($5–$20/month for consumer apps) with high user volumes. B2B ARPU is higher ($100–$10,000+/month) with fewer accounts. The economics of customer success, support, and acquisition are fundamentally different. ### What is the relationship between ARPU and [LTV](/calculators/customer-lifetime-value-calculator)? LTV = ARPU × Average Customer Lifetime (in months). For subscription businesses: LTV = ARPU ÷ Monthly Churn Rate. Improving ARPU directly increases LTV, making your acquisition economics more favorable. ### How do refunds affect ARPPU calculations? Always use net revenue (after refunds and chargebacks) in ARPPU calculations. Gross ARPPU can be misleading in categories with high refund rates (apps, digital subscriptions). ## Related guides - [Creator Monetization Guide: Sponsor Rates, RPM, and Audience Value](https://dothecalculation.com/blog/marketing/creator-monetization-guide) — Compare creator monetization models with clear formulas for sponsor pricing, ad revenue, engagement quality, YouTube RPM, affiliate earnings, and negotiation ranges. ## Related calculators - [Average Revenue Per Account (ARPA) Calculator](https://dothecalculation.com/calculators/average-revenue-per-account-calculator) — Calculate average revenue per subscriber or account over monthly or annual periods to track recurring revenue growth and pricing health. - [Ad Revenue Calculator](https://dothecalculation.com/calculators/ad-revenue-calculator) — Project display ad revenue from page views, RPM, fill rate, and annual traffic assumptions to forecast website monetization earnings. - [Affiliate Commission Calculator](https://dothecalculation.com/calculators/affiliate-commission-calculator) — Calculate affiliate marketing earnings from clicks, conversion rate, average order value, and commission percentage for each referral sale. - [Podcast Download & CPM Calculator](https://dothecalculation.com/calculators/podcast-download-rate-calculator) — Calculate podcast CPM earnings, download-to-listener ratio, and projected sponsorship revenue to value your podcast advertising inventory. - [YouTube AdSense RPM Calculator](https://dothecalculation.com/calculators/youtube-adsense-rpm-calculator) — Project estimated YouTube AdSense earnings from views, CPM or RPM rate, and platform revenue splits to forecast creator ad income. - [YouTube CPM & RPM Creator Calculator](https://dothecalculation.com/calculators/youtube-cpm-rpm-calculator) — Project YouTube gross ad revenue, creator net revenue, and creator RPM earnings to estimate income from your channel monetization. --- _This calculator is for educational and business planning purposes only. Verify all rates, margins, and contract terms before making operational business decisions._ --- _Source: [Do The Calculation](https://dothecalculation.com/calculators/arpu-arppu-saas-calculator). Quote freely with attribution and a link to this page._