## Definition of Average Revenue Per User ARPU (Average Revenue Per User) is a [[Product Metric]] used by product managers to measure the average amount of [[Revenue]] per user that a product generates over a period of time. ## Average Revenue Per User Formula & Calculation It is typically calculated by taking the total revenue generated by a product or service and dividing it by the total number of users. For example, if a product had 1000 users and generated $10,000 in total revenue over a month, the ARPU would be $10.00 ($10,000 / 1000 users). This metric can be used to measure the success of a product or service in terms of revenue generation and provide an indication of how well the user base is monetizing.