Average revenue per account (ARPA)
Also: ARPA, ARPU
Average revenue per account is the recurring revenue earned per active customer account in a period, usually monthly. It shows whether the business is moving up or down market and is a core input to lifetime value. ARPA and ARPU are close cousins, differing in whether the unit is an account or a user.
Formula
ARPA = MRR ÷ number of active accounts
How to read it
Average across accounts hides a skewed distribution, so look at the median and at ARPA by plan or segment as well. A rising ARPA with falling customer count can mean healthy upmarket movement or a loss of small customers.