Revenue per user measures how effectively a business monetizes its user base. Learn how this metric decomposes in a KPI tree.
Revenue per user is total revenue divided by the number of users, similar to ARPU but sometimes calculated differently depending on whether 'users' includes free-tier or inactive accounts. In a KPI tree, revenue per user decomposes into: pricing tier × feature usage × billing frequency. This decomposition reveals whether monetization improvements should focus on pricing, adoption, or billing structure.