ARPU

The average revenue generated per active user or customer over a given period. ARPU = Total Revenue ÷ Number of Active Users.

ARPU tells you how well you are monetising your user base. Growing ARPU, through pricing, upsells, or expansion, is often more efficient than acquiring new users.

Your SaaS has 500 paying users generating £8,500 MRR. ARPU = £17/month. If you introduce a higher-tier plan and 100 users upgrade, ARPU jumps, without adding a single new customer.