ARPA
What is ARPA?
ARPA is average revenue per account, the average recurring revenue generated per customer account — total MRR divided by the number of active accounts, typically measured monthly. It is a core input to LTV and unit-economics calculations.
Also known as: Average Revenue Per Account
ARPA Formula
ARPA = MRR / Total Number of Accounts | Variable | Meaning |
|---|---|
MRR | Total monthly recurring revenue. |
Total Number of Accounts | Count of active customer accounts in the period. |
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Common Mistakes with ARPA
- Not knowing your unit economics (CAC, LTV, ARPA, ACV, churn, payback months) — teams that cannot quote these numbers under-invest in sales and marketing (typically 10-25% of revenue) and never master paid acquisition or outbound prospecting.
ARPA vs Related Metrics
- ARPA vs LTV to CAC Ratio — how the two differ and when each matters.