Average Revenue Per Account (ARPA)

Average Revenue Per Account is your total recurring revenue divided by the number of paying accounts — the typical monthly value of a customer. It is the simplest measure of what each account is worth to you, and a building block for lifetime value.

It moves for two very different reasons: your customers paying more, or your customer mix shifting. A rising ARPA can mean genuine up-tiering, or simply that you churned your smallest accounts — so read it alongside your movements before celebrating.

Divide total MRR by the number of paying accounts in the period. Twenty thousand dollars of MRR across a hundred paying accounts is an ARPA of $200. Use the same paying-account definition as everywhere else so the denominator is consistent.

Segment it before you trust it: a single blended ARPA hides wildly different economics between self-serve and enterprise, and the blend can move purely because the mix did.