ARPU Calculator
Falling ARPU with rising revenue is a mix signal.
ARPU
$60.00
up $4.00 on last period
ARPU falling while revenue grows means you are adding customers who spend less — which can be a healthy widening of the market or a sign the acquisition mix is deteriorating. Segmenting by cohort tells you which.
How the ARPU Calculator works
ARPU falling while revenue grows means you are adding customers who spend less — which can be a healthy widening of the market or a sign the acquisition mix is deteriorating. Segmenting by cohort is what tells you which.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How is ARPU calculated?
Revenue divided by active users in the period. Which users count as active is the definition that matters most and the one most often left vague.
What causes ARPU to fall?
A shift in acquisition mix toward cheaper segments, discounting, or a lower-priced tier taking share. The first is often deliberate and the other two often are not.
Is falling ARPU always bad?
No. Entering a larger, lower-spending segment lowers ARPU and can raise total profit substantially. It is only bad when it happens without anyone choosing it.
How does ARPU relate to lifetime value?
ARPU times average lifespan, adjusted for margin, gives lifetime value. ARPU alone says nothing about whether those users stay.