In short
Average revenue per user (ARPU) is the total revenue an app or business earns in a period divided by the number of users in that period. It shows how much value the typical user generates and is used to compare pricing, monetization and growth across time and segments.
Why it matters for apps
ARPU links engagement to money. When users stay longer and use more features, they usually have more chances to pay.
- Define "user" clearly: ARPU based on all signups looks very different from ARPU based on monthly active users. Pick one and keep it.
- Split by segment: A blended number hides that a small group may pay most of the revenue.
- Not the same as ARPPU: Average revenue per paying user ignores free users and is always higher.
- Avoid short-term pushes: Aggressive upsells can lift ARPU for a month while increasing churn later.
For engagement teams, the useful question is which behaviors separate high-ARPU users from the rest. Those behaviors are what rewards and challenges should encourage.
Industry examples
Revolut offers several paid subscription tiers on top of its free plan, which raises revenue from users who upgrade.
A fitness app tracks ARPU by segment and finds that users who complete monthly challenges are more likely to upgrade (hypothetical).
Build it with StriveCloud
StriveCloud does not calculate ARPU, but it supports the behaviours behind it. Premium membership packages add monthly or yearly subscriptions with perks, and payment integrations such as Stripe let users buy currency directly. Segments in call-to-action mode show premium-only challenges or products to everyone as an upgrade nudge.
Want to try this? See the Revolut playbook
Frequently asked questions
How do you calculate ARPU?
Divide total revenue for a period by the number of users in that period. Monthly ARPU uses monthly revenue and monthly users.
What is the difference between ARPU and ARPPU?
ARPU divides revenue by all users. ARPPU divides it only by paying users, so it is always equal to or higher than ARPU.
How can an app increase ARPU?
Common levers are better retention, clearer upgrade paths and rewards that show users the value of paid features. Avoid pushes that raise churn.