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How-to guide

How to Calculate Average Revenue Per User (ARPU): Formula, Steps & Examples

Learn how to calculate Average Revenue Per User (ARPU) — the formula explained step by step, with worked examples and a free calculator to check your answer.

By Priya Nair, MBA, Finance & Strategy · Updated Jun 2026 · 2 min read

Calculating your average revenue per user is straightforward once you know the Average Revenue Per User (ARPU) formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Average Revenue Per User (ARPU) Calculator.

What is Average Revenue Per User (ARPU)?

The Average Revenue Per User (ARPU) calculation tells you your average revenue per user from a few simple inputs. The figure you are solving for here is the average revenue per user, expressed in INR.

The Average Revenue Per User (ARPU) formula

The core formula is:

Average revenue per user = Total revenue ÷ Number of users

Here is what each input means:

  • Total revenue — a money amount. Example: ₹10,00,000.
  • Number of users — a number. Example: 5,000.

How to calculate it step by step

  • Write down the total revenue (for example, ₹10,00,000).
  • Write down the number of users (for example, 5,000).
  • Apply the formula above to get your average revenue per user.
  • Double-check the result with the Average Revenue Per User (ARPU) Calculator.

Worked examples

Example 1

Input / OutputValue
Total revenue₹10,00,000
Number of users5,000
Average revenue per user₹200.00

With total revenue of ₹10,00,000 and number of users of 5,000, the average revenue per user works out to ₹200.00.

Example 2

With total revenue of ₹20,00,000 and number of users of 5,000, the average revenue per user works out to ₹400.00.

ResultValue
Average revenue per user₹400.00

Example 3

With total revenue of ₹5,00,000 and number of users of 5,000, the average revenue per user works out to ₹100.00.

ResultValue
Average revenue per user₹100.00

Tips for an accurate result

  • Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
  • Round only at the very end. Rounding inputs early can shift the final answer noticeably.
  • Re-run the numbers whenever an input changes, rather than estimating from an old result.

Prefer not to do the maths by hand? — the Average Revenue Per User (ARPU) Calculator does it instantly, for free, with the formula and a worked example built in.

Continue exploring business calculators with these tools: Discount Calculator, Price Elasticity of Demand Calculator, Profit Margin Calculator, Gross Profit Calculator, ROI Calculator.

Calculators in this guide

Frequently asked questions

The formula is: Average revenue per user = Total revenue ÷ Number of users. With total revenue of ₹10,00,000 and number of users of 5,000, the average revenue per user works out to ₹200.00.

Gather each input, apply the formula step by step keeping your units consistent, and round only at the end. You can verify your answer instantly with the Average Revenue Per User (ARPU) Calculator.

It uses the standard formula with exact arithmetic, so the result is correct for the inputs you enter. Bear in mind that real-world outcomes can still differ when underlying assumptions change.

The average revenue per user is expressed in INR. Make sure your inputs use matching units so the result is correct.

Priya Nair · MBA, Finance & Strategy

Priya Nair is a business analyst and MBA who advises small businesses and startups on pricing, unit economics and growth metrics.