Average Revenue Per Account Calculator

An evaluation of a company’s revenue per customer account is done using the profitability metric known as average revenue per account (ARPA). The company’s revenue for a period is divided by the number of accounts for that time to determine ARPA.

In simple terms, the average revenue generated by each client is quantified by the Average Revenue Per Account. By dividing the company’s income by the total number of users, one may determine the inferred Average Revenue per account.

The average revenue per calculator works on a similar principle as well-known indicators for online businesses like monthly DAU (daily active users). Only users who are “active” on the platform are to be counted.

The average payment value can easily change if “inactive” users (or non-paying customers) are included; hence, segmenting client types enables businesses to understand spending habits and amounts better.

When comparing groupings of accounts by month, ARPA is helpful. This is useful for identifying patterns in account growth and decline, assessing pricing strategies (are you losing money? ), and comprehending how your ARPA is changing.

Try this average revenue per account calculator to better understand your revenue