ARPA Calculator
Average Revenue Per Account, or ARPA, tells you how much recurring revenue each customer account brings in on average, and this calculator works it out from your totals. ARPA, sometimes called average revenue per customer, divides your total recurring revenue by the number of accounts paying for it. It is a deceptively powerful metric, because it reveals the quality of your revenue rather than just its quantity: two businesses with the same MRR but very different ARPA are pursuing very different strategies, one serving many small accounts, the other fewer larger ones. Tracking ARPA over time shows whether you are moving upmarket, as it rises, or downmarket, as it falls, and growing ARPA through upsells, premium tiers and price increases is one of the most efficient ways to grow, since it lifts revenue without the cost of acquiring more customers. This calculator makes it clear. You enter your total Monthly Recurring Revenue and your number of accounts, and it returns the monthly ARPA, the annualised figure, and the inputs for reference. The results update as you type. Use it to understand your revenue mix, to track movement up or down market, or to feed lifetime-value and unit-economics calculations, which use ARPA as a core input. The monthly ARPA is total MRR divided by the number of accounts, and the annual ARPA is twelve times that. A rising ARPA is generally a healthy sign, indicating either that you are attracting larger customers or that existing ones are expanding, both of which improve unit economics and lifetime value. It pairs naturally with ARPU, average revenue per user, which divides by users rather than accounts, useful when accounts contain multiple seats. Watching ARPA helps ensure that growth in customer numbers is not quietly being offset by a drift toward smaller, less valuable accounts.
ARPA = total MRR / number of accounts. Annual ARPA = monthly x 12. Rising ARPA signals a move upmarket or expansion; falling ARPA a drift toward smaller accounts.
How it works
ARPA divides the total Monthly Recurring Revenue by the number of paying accounts to give the average recurring revenue each account generates per month. Multiplying by twelve gives the annual figure. It measures the average value of a customer relationship, independent of how many customers you have.
Worked example
With total MRR of $16,000 spread across 200 accounts, the monthly ARPA is $16,000 divided by 200, which is $80 per account. Annualised, that is twelve times $80, giving an annual ARPA of $960 per account.
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