RevenueMetric 3 of 35

ARPUAverage Revenue Per User

Average monthly revenue per active customer.

How much each customer is worth to you per month on average. ARPU is a pricing-and-positioning signal: rising ARPU usually means upsells working or down-market customers churning; falling ARPU often means promo discounts or a shift toward smaller accounts.

Formula

ARPU = MRR ÷ Active Customers

Worked example

MRR $50,000 with 250 active customers → ARPU = $200/mo.

Benchmark

By segment

SMB

$50–$500

Mid-market

$500–$5,000

Enterprise

$5,000+

Why it matters

ARPU determines your go-to-market motion. Low ARPU (<$50) demands self-serve and product-led growth — you can't afford salespeople. Mid ARPU ($500+) opens inside sales. ARPU also caps your acceptable CAC: a $20 ARPU product can't sustain a $1,000 CAC.

Common mistakes

Calculating ARPU on revenue including one-off charges — inflates the number deceptively.
Not segmenting ARPU by plan — hides which tier is actually working.
Comparing your ARPU to a different ICP without adjusting expectations.

Tracked in FlowMRR

Dashboard → revenue-per-customer trend chart, next to MRR and active-customer count.

Track ARPU in FlowMRR