ARPU (Average Revenue Per User) is the average revenue from one user or customer in a period. A key metric in subscription and SaaS models.
Back to the knowledge baseARPU (Average Revenue Per User) is the average revenue per user: divide total revenue by the number of active users, usually monthly. It's especially important in subscription and SaaS businesses.
Rising ARPU is a healthy sign: each user brings more value (for example, via a higher plan or add-on service). It's closely tied to LTV.
ARPU is average revenue for a period (e.g., monthly). LTV is total revenue over the customer's whole life. Simply put: LTV ≈ ARPU × customer lifespan.
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