ARPAAverage Revenue Per Account
Average monthly revenue per paying account, not per seat.
ARPA measures revenue per customer account, where ARPU often measures revenue per user or seat. In multi-seat B2B products the two diverge sharply: one account can hold dozens of seats. Track ARPA for pricing and expansion, ARPU for seat-economics.
Formula
ARPA = MRR ÷ Active AccountsWorked example
MRR $60,000 across 200 accounts → ARPA = $300/account. If those accounts hold 1,500 seats, ARPU (per seat) = $40 — same revenue, very different story.
Benchmark
By motionWhy it matters
ARPA is the number that should trend up as you move up-market or layer in expansion. Rising ARPA with flat customer count means your existing base is paying you more — the cheapest growth there is. Confusing ARPA with per-seat ARPU is how teams misprice multi-seat plans.
Common mistakes
- Using ARPU and ARPA interchangeably when your plans are seat-based.
- Computing ARPA on total revenue including one-off fees.
- Not segmenting ARPA by plan or cohort, which hides where expansion actually happens.
Tracked in FlowMRR
Dashboard → revenue-per-account view; switch to per-seat ARPU on the same chart.
