Source: https://www.revvly.ai/glossary/arpa

[Glossary](https://www.revvly.ai/glossary)

# 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.

## Further reading

- [Average Revenue Per Account (ARPA): What It Is and How to Grow It](https://www.revvly.ai/blog/average-revenue-per-account-arpa-for-saas)

## Related terms

- [Monthly recurring revenue (MRR)](https://www.revvly.ai/glossary/mrr)
- [Customer lifetime value (LTV)](https://www.revvly.ai/glossary/ltv)

Revvly

Orchestrate the flow of revenue.

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