Glossary

What is ARPPU

What is ARPPU?

ARPPU (Average Revenue Per Paying User) measures the average revenue generated from users who actually make payments. Unlike ARPU, which includes all users, ARPPU focuses only on monetizing users.



Why ARPPU Matters

1. Precision in Revenue Tracking

Focuses on actual paying users, measuring true revenue performance rather than averages diluted by non-payers.

2. Smarter User Acquisition

Shows which campaigns bring high-value users, helping allocate budget efficiently.

3. Better Product Decisions

Understanding spending behavior helps refine pricing and features that encourage higher payments.

4. Invaluable for Freemium

In apps where only a small fraction pay, ARPPU identifies how much those users truly contribute.



How to Calculate ARPPU

ARPPU = Total Revenue ÷ Number of Paying Users

Example

If your app generated $60,000 in one month from 3,000 paying users:

$60,000 ÷ 3,000 = $20 ARPPU



FAQs

What is ARPPU?

Average Revenue Per Paying User—the average revenue from users who make payments.

How is ARPPU different from ARPU?

ARPPU only counts paying users; ARPU includes all users (paying and non-paying).



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