What is ARPU?

What is ARPU?
ARPU, short for Average Revenue Per User, is a measure used to quantify the average revenue each active user in a membership, community or app generates over a defined period of time.

Extending this concept to SaaS, it is the revenue generated from each paid subscription over a period, typically per month or year and is termed ARPU (Average Revenue per user).

How do I Calculate ARPU?
ARPU is calculated by taking the total revenues of a community, membership or app users dividing by the number users. For example, an app has 10,000 users that generated $75,000 in revenues in the last 12 months:

$75,000 divided by 10,000 users = $7.5 ARPU (Average Revenue Per User)