📈 Metrics

ARPU

Average revenue per user.

Formula

ARPU = Revenue ÷ Number of users

ARPU shows how much the typical customer pays. Telecoms, apps and subscriptions live by it.

Revenue can grow from more users or from higher ARPU — they need very different strategies.

🧮 Example

₹30 crore revenue from 10 lakh users → ARPU = ₹300.

🎯 Interview tip

Check the mix: a few premium users can make ARPU look healthy while most users pay nothing.

Used in

Learn next

Revenue

All the money coming in from sales.

Lifetime value (LTV)

The total profit a customer brings before they leave.

Pricing strategy

Three ways to set a price: cost, competitors, or value.

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