What Is ARPU in SaaS? Definition, Formula, and Benchmarks

~1 min read

ARPU measures the average monthly revenue each paying customer generates. It's the SaaS metric that connects pricing strategy to growth requirements.

Formula: ARPU = Total MRR / Active Paying Users

ARPU determines required scale

ARPU Customers needed for $100k MRR
$10/month 10,000 customers
$100/month 1,000 customers
$500/month 200 customers
$1,000/month 100 customers

This table explains why enterprise SaaS companies can build $10M ARR with 200 customers, while consumer apps need millions of paying users for the same revenue.

ARPU benchmarks by segment

  • Consumer: $5–$20/month
  • SMB: $30–$200/month
  • Mid-market: $200–$2,000/month
  • Enterprise: $2,000+/month

Calculate yours at the ARPU Calculator.

Calculate it yourself — free

Use our free ARPU Calculator (Average Revenue Per User) to run the numbers for your own business.

Open ARPU Calculator →