ARPU measures the average revenue generated per user. Learn how ARPU fits into SaaS and e-commerce KPI trees.
Average Revenue Per User (ARPU) is total revenue divided by the number of active users in a period. In a KPI tree, ARPU is a direct component of the revenue equation: Revenue = Users × ARPU. ARPU itself can be decomposed into product mix, pricing tier distribution, and usage-based charges. Tracking ARPU trends reveals whether the business is monetizing its user base more or less effectively over time.