mrr
Numerator of ARPU.
arpu
Also: average revenue per user · average revenue per account
ARPU (Average Revenue Per User) is total MRR divided by active customer count. A foundational SaaS unit metric — tracks pricing power, customer mix, and expansion success over time. Healthy SaaS at $5K-$500K ARR runs ARPU between $20 (B2C SaaS) and $500 (mid-market B2B SaaS).
In context.
Porchops's Dale shows ARPU in the Monday brief alongside MRR and customer count. ARPU drift is a leading indicator — slowly rising ARPU usually means successful expansion or tier mix improvement; slowly falling ARPU means downmarket movement or downgrade pressure.
ARPU isn't a metric to optimize directly. It's a function of pricing, customer mix, and expansion. Watch the inputs; let ARPU follow.
Concrete instances.
$50K MRR / 200 customers = $250 ARPU.
ARPU rises from $250 to $280 over 6 months: probably expansion (existing customers upgrading) or new customers entering at higher tiers.
ARPU falls from $250 to $220 over 6 months: probably downmarket movement (smaller customers acquired) or downgrades from existing customers.
Common questions.
What's a healthy ARPU?
Depends on tier. B2C SaaS: $5-$50. SMB SaaS: $50-$300. Mid-market B2B: $300-$2,000. Enterprise: $2,000+. Match your ARPU to your customer mix; don't compare across tiers.
How is ARPU different from LTV?
ARPU is monthly snapshot; LTV (Lifetime Value) is total revenue over a customer's entire lifetime. LTV ≈ ARPU × (1 / monthly churn rate). ARPU is operational; LTV is strategic.
How do I lift ARPU?
Three ways: raise prices (existing tier upgrades), expand existing customers (Cleo's signal-flagging), or acquire higher-tier new customers. The first is the highest-leverage; the second is the most defensible.