Report: Average Revenue Per Account
The Average Revenue Per Account (ARPA) report shows the average monthly recurring revenue (MRR) per paying subscriber and how that figure changes over time.
Also known as ARPU or ARPC, ARPA helps you evaluate the effectiveness of your pricing, messaging, and acquisition channels. Unlike LTV (Customer Lifetime Value), which measures the total revenue a customer generates before they churn, ARPA tells you what your average subscriber is worth right now.
If you’re new to ChartMogul, get to know how reports work.
If you’re interested in analyzing the change in average initial price of new subscriptions, see Average Sale Price.
ARPA vs. LTV
There’s a bit of confusion when it comes to the difference between the Average Revenue per Account and the Customer Lifetime Value (LTV). They’re not the same.
LTV tracks the total amount of money an average customer pays you before they churn — it measures how well you’re retaining customers and whether you’re targeting the right ones.
ARPA is better suited to evaluating your pricing, messaging, and the channels you use to reach customers.
What to Know About This Report
- ChartMogul calculates ARPA using MRR (monthly recurring revenue — the predictable revenue from active subscriptions each month), which comes from recurring invoice line items (subscriptions or trials) or manual subscriptions — not one-off transactions. Customers with free subscriptions do not contribute to this report.
- Customers with an Active Subscriber (a customer with a live, paying subscription) or Past-due Subscriber (a customer whose payment has failed but whose subscription hasn't yet been cancelled) status are counted as subscribers. Learn more about customer and subscription statuses.
- A customer with multiple subscriptions is counted as one subscriber.
- Toggle between the default (MRR) and annualized (ARR) view. Report Data values update accordingly. Learn more.
How ChartMogul Calculates Average Revenue Per Account
ChartMogul calculates ARPA by dividing total MRR for a given period by the number of paying subscribers in that period:
ARPA = Total MRR ÷ Number of paying subscribers
For example, you have five customers:
- Customers 1 and 2 pay $100 per month
- Customer 3 pays $300 per month
- Customers 4 and 5 pay $500 per month
Total MRR = $1,500. ARPA = $1,500 ÷ 5 = $300.
How to Read the Report Data Table
See Report Data.
Next Steps
- Learn about ARPA in our SaaS metrics library.
- Segment this report by marketing channel, region, or training program completion to see which subscribers bring in the most revenue.
- Measure the number of Subscribers.
- Track total expected revenue per subscriber with Customer Lifetime Value.