HOW TO USE OUR ARPU CALCULATOR

Our ARPU calculator allows you to find the average revenue per user for your SaaS company. This is an important metric to know because knowing your ARPU allows you to solve more advanced SaaS equations. For example, if you know your ARPU you can figure out your LTV (Customer Lifetime Value) as well as your LTV / CAC ratio. This allows you to establish marketing budget benchmarks to ensure you see an ROI on your marketing efforts. 

WHAT IS THE EQUATION TO CALCULATE ARPU?

Since your SaaS company likely offers different pricing tiers, ARPU allows you to average your revenue / user by simply dividing your revenue by the number of users you have. The formula to calculate ARPU is: 

ARPU = MRR / Total number of paying subscribers

AN EXAMPLE

For example, if we if your SaaS company had $100 in MRR (Monthly Recurring Revenue) and you had a total of 10 paying users, your ARPU would be 100 / 10 which equals an ARPU of $10. When calculating your ARPU it doesn’t matter if some of your users are paying $20 and others are paying $5. ARPU will average pricing differences out across all users to give you an average. 

Hi There! 👋

Thanks for using our real-time SaaS ARPU calculator!

Our ARPU calculator is easy to use and will quickly calculate what your average revenue / user is.. 

ARPU is an easy metric to calculate, but it’s also an important metric, because it’s use as a building block for more important KPIs like LTV (Lifetime Value) or your LTV:CAC ratio. . 

Are you’re looking to grow 🚀 your SaaS company? 

At WhalePages, we specialize in helping SaaS companies grow through the use of our aggressive SEO and content marketing campaigns.

For example, we’ll create cool tools (like the calculator on this page) 👈 to help you earn backlinks and bring your traffic levels to new heights. 

If you’re interested in learning more about how we can help, please visit our homepage here

 

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